Correlation Between Amundi Index and Amundi PEA
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Amundi PEA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Amundi Index and Amundi PEA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and Amundi PEA Eau, you can compare the effects of market volatilities on Amundi Index and Amundi PEA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Amundi Index with a short position of Amundi PEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Amundi PEA.
Diversification Opportunities for Amundi Index and Amundi PEA
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and Amundi is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Amundi PEA Eau in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi PEA Eau and Amundi Index is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Amundi Index Solutions are associated (or correlated) with Amundi PEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi PEA Eau has no effect on the direction of Amundi Index i.e., Amundi Index and Amundi PEA go up and down completely randomly.
Pair Corralation between Amundi Index and Amundi PEA
Assuming the 90 days trading horizon Amundi Index is expected to generate 1.84 times less return on investment than Amundi PEA. But when comparing it to its historical volatility, Amundi Index Solutions is 3.23 times less risky than Amundi PEA. It trades about 0.12 of its potential returns per unit of risk. Amundi PEA Eau is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,995 in Amundi PEA Eau on September 1, 2024 and sell it today you would earn a total of 239.00 from holding Amundi PEA Eau or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Amundi Index Solutions vs. Amundi PEA Eau
Performance |
| Timeline |
| Amundi Index Solutions |
| Amundi PEA Eau |
Amundi Index and Amundi PEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Amundi PEA
The main advantage of trading using opposite Amundi Index and Amundi PEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Amundi PEA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amundi PEA will offset losses from the drop in Amundi PEA's long position.| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi SP 500 | Amundi Index vs. Amundi MSCI Europe |
| Amundi PEA vs. Lyxor MSCI China | Amundi PEA vs. Manitou BF SA | Amundi PEA vs. Ossiam Minimum Variance | Amundi PEA vs. Granite 3x LVMH |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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