Correlation Between Amundi Index and BB Biotech
Can any of the company-specific risk be diversified away by investing in both Amundi Index and BB Biotech 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 BB Biotech 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 BB Biotech AG, you can compare the effects of market volatilities on Amundi Index and BB Biotech 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 BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and BB Biotech.
Diversification Opportunities for Amundi Index and BB Biotech
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amundi and BION is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and BB Biotech AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Biotech AG 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 BB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Biotech AG has no effect on the direction of Amundi Index i.e., Amundi Index and BB Biotech go up and down completely randomly.
Pair Corralation between Amundi Index and BB Biotech
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.92 times more return on investment than BB Biotech. However, Amundi Index Solutions is 1.08 times less risky than BB Biotech. It trades about -0.03 of its potential returns per unit of risk. BB Biotech AG is currently generating about -0.05 per unit of risk. If you would invest 5,225 in Amundi Index Solutions on September 24, 2024 and sell it today you would lose (1,126) from holding Amundi Index Solutions or give up 21.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Amundi Index Solutions vs. BB Biotech AG
Performance |
| Timeline |
| Amundi Index Solutions |
| BB Biotech AG |
Amundi Index and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and BB Biotech
The main advantage of trading using opposite Amundi Index and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, BB Biotech 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 BB Biotech will offset losses from the drop in BB Biotech's long position.| Amundi Index vs. UBSFund Solutions MSCI | Amundi Index vs. Vanguard SP 500 | Amundi Index vs. iShares VII PLC | Amundi Index vs. iShares Core SP |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |