Correlation Between Amundi Index and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Amundi Index 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 Index 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 Index Solutions, you can compare the effects of market volatilities on Amundi Index and Amundi Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Amundi Index.
Diversification Opportunities for Amundi Index and Amundi Index
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amundi and Amundi is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Amundi Index i.e., Amundi Index and Amundi Index go up and down completely randomly.
Pair Corralation between Amundi Index and Amundi Index
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.83 times more return on investment than Amundi Index. However, Amundi Index Solutions is 1.2 times less risky than Amundi Index. It trades about 0.05 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.02 per unit of risk. If you would invest 38,118 in Amundi Index Solutions on September 12, 2024 and sell it today you would earn a total of 5,105 from holding Amundi Index Solutions or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Amundi Index Solutions
Performance |
| Timeline |
| Amundi Index Solutions |
| Amundi Index Solutions |
Amundi Index and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Amundi Index
The main advantage of trading using opposite Amundi Index and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| Amundi Index vs. Amundi EUR High | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Pacific | Amundi Index vs. Amundi MSCI Europe |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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