Correlation Between Amundi Index and HAN GINS

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Can any of the company-specific risk be diversified away by investing in both Amundi Index and HAN GINS 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 HAN GINS 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 HAN GINS Tech Megatrend, you can compare the effects of market volatilities on Amundi Index and HAN GINS 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 HAN GINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and HAN GINS.

Diversification Opportunities for Amundi Index and HAN GINS

0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Amundi and HAN is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and HAN GINS Tech Megatrend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAN GINS Tech 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 HAN GINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAN GINS Tech has no effect on the direction of Amundi Index i.e., Amundi Index and HAN GINS go up and down completely randomly.

Pair Corralation between Amundi Index and HAN GINS

Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the HAN GINS. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Index Solutions is 5.72 times less risky than HAN GINS. The etf trades about -0.06 of its potential returns per unit of risk. The HAN GINS Tech Megatrend is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,378  in HAN GINS Tech Megatrend on September 24, 2024 and sell it today you would earn a total of  58.00  from holding HAN GINS Tech Megatrend or generate 4.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Amundi Index Solutions  vs.  HAN GINS Tech Megatrend

 Performance 
       Timeline  
Amundi Index Solutions 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amundi Index Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Amundi Index is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
HAN GINS Tech 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in HAN GINS Tech Megatrend are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, HAN GINS sustained solid returns over the last few months and may actually be approaching a breakup point.

Amundi Index and HAN GINS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amundi Index and HAN GINS

The main advantage of trading using opposite Amundi Index and HAN GINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, HAN GINS 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 HAN GINS will offset losses from the drop in HAN GINS's long position.
The idea behind Amundi Index Solutions and HAN GINS Tech Megatrend pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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