Correlation Between Antin IP and Amundi SA
Can any of the company-specific risk be diversified away by investing in both Antin IP and Amundi 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 Antin IP and Amundi SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antin IP SA and Amundi SA, you can compare the effects of market volatilities on Antin IP and Amundi 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 Antin IP with a short position of Amundi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antin IP and Amundi SA.
Diversification Opportunities for Antin IP and Amundi SA
Average diversification
The 3 months correlation between Antin and Amundi is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Antin IP SA and Amundi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi SA and Antin IP 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 Antin IP SA are associated (or correlated) with Amundi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi SA has no effect on the direction of Antin IP i.e., Antin IP and Amundi SA go up and down completely randomly.
Pair Corralation between Antin IP and Amundi SA
Assuming the 90 days trading horizon Antin IP SA is expected to under-perform the Amundi SA. In addition to that, Antin IP is 1.67 times more volatile than Amundi SA. It trades about -0.04 of its total potential returns per unit of risk. Amundi SA is currently generating about 0.04 per unit of volatility. If you would invest 4,678 in Amundi SA on September 5, 2024 and sell it today you would earn a total of 1,372 from holding Amundi SA or generate 29.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antin IP SA vs. Amundi SA
Performance |
| Timeline |
| Antin IP SA |
| Amundi SA |
Antin IP and Amundi SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antin IP and Amundi SA
The main advantage of trading using opposite Antin IP and Amundi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antin IP position performs unexpectedly, Amundi 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 Amundi SA will offset losses from the drop in Amundi SA's long position.The idea behind Antin IP SA and Amundi 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.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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