Correlation Between Amundi SA and Idsud SA
Can any of the company-specific risk be diversified away by investing in both Amundi SA and Idsud SA 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 SA and Idsud SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi SA and Idsud SA, you can compare the effects of market volatilities on Amundi SA and Idsud SA 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 SA with a short position of Idsud SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SA and Idsud SA.
Diversification Opportunities for Amundi SA and Idsud SA
Significant diversification
The 3 months correlation between Amundi and Idsud is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SA and Idsud SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idsud SA and Amundi SA 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 SA are associated (or correlated) with Idsud SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idsud SA has no effect on the direction of Amundi SA i.e., Amundi SA and Idsud SA go up and down completely randomly.
Pair Corralation between Amundi SA and Idsud SA
Assuming the 90 days trading horizon Amundi SA is expected to under-perform the Idsud SA. In addition to that, Amundi SA is 60.9 times more volatile than Idsud SA. It trades about -0.18 of its total potential returns per unit of risk. Idsud SA is currently generating about 0.21 per unit of volatility. If you would invest 19,010 in Idsud SA on September 2, 2024 and sell it today you would earn a total of 30.00 from holding Idsud SA or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi SA vs. Idsud SA
Performance |
| Timeline |
| Amundi SA |
| Idsud SA |
Amundi SA and Idsud SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SA and Idsud SA
The main advantage of trading using opposite Amundi SA and Idsud SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SA position performs unexpectedly, Idsud SA 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 Idsud SA will offset losses from the drop in Idsud SA's long position.The idea behind Amundi SA and Idsud SA 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.| Idsud SA vs. GEA Grenobl Elect | Idsud SA vs. ID Logistics Group | Idsud SA vs. Graines Voltz SA | Idsud SA vs. IDI SCA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |