Correlation Between Amundi SA and Tikehau Capital
Can any of the company-specific risk be diversified away by investing in both Amundi SA and Tikehau Capital 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 Tikehau Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi SA and Tikehau Capital, you can compare the effects of market volatilities on Amundi SA and Tikehau Capital 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 Tikehau Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SA and Tikehau Capital.
Diversification Opportunities for Amundi SA and Tikehau Capital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amundi and Tikehau is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SA and Tikehau Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tikehau Capital 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 Tikehau Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tikehau Capital has no effect on the direction of Amundi SA i.e., Amundi SA and Tikehau Capital go up and down completely randomly.
Pair Corralation between Amundi SA and Tikehau Capital
Assuming the 90 days trading horizon Amundi SA is expected to generate 1.16 times more return on investment than Tikehau Capital. However, Amundi SA is 1.16 times more volatile than Tikehau Capital. It trades about 0.05 of its potential returns per unit of risk. Tikehau Capital is currently generating about -0.01 per unit of risk. If you would invest 4,766 in Amundi SA on August 27, 2024 and sell it today you would earn a total of 1,954 from holding Amundi SA or generate 41.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi SA vs. Tikehau Capital
Performance |
| Timeline |
| Amundi SA |
| Tikehau Capital |
Amundi SA and Tikehau Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SA and Tikehau Capital
The main advantage of trading using opposite Amundi SA and Tikehau Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SA position performs unexpectedly, Tikehau Capital 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 Tikehau Capital will offset losses from the drop in Tikehau Capital's long position.| Amundi SA vs. Caisse rgionale de | Amundi SA vs. Caisse Regionale de | Amundi SA vs. Manitou BF SA | Amundi SA vs. Ossiam Minimum Variance |
| Tikehau Capital vs. Eurazeo | Tikehau Capital vs. Wendel | Tikehau Capital vs. SPIE SA | Tikehau Capital vs. Amundi SA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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