Correlation Between Amundi Index and Hubersuhner
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Hubersuhner 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 Hubersuhner 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 Hubersuhner AG, you can compare the effects of market volatilities on Amundi Index and Hubersuhner 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 Hubersuhner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Hubersuhner.
Diversification Opportunities for Amundi Index and Hubersuhner
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amundi and Hubersuhner is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Hubersuhner AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubersuhner 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 Hubersuhner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubersuhner AG has no effect on the direction of Amundi Index i.e., Amundi Index and Hubersuhner go up and down completely randomly.
Pair Corralation between Amundi Index and Hubersuhner
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the Hubersuhner. In addition to that, Amundi Index is 1.42 times more volatile than Hubersuhner AG. It trades about -0.24 of its total potential returns per unit of risk. Hubersuhner AG is currently generating about -0.18 per unit of volatility. If you would invest 7,720 in Hubersuhner AG on September 20, 2024 and sell it today you would lose (320.00) from holding Hubersuhner AG or give up 4.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Amundi Index Solutions vs. Hubersuhner AG
Performance |
Timeline |
Amundi Index Solutions |
Hubersuhner AG |
Amundi Index and Hubersuhner Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amundi Index and Hubersuhner
The main advantage of trading using opposite Amundi Index and Hubersuhner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Hubersuhner 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 Hubersuhner will offset losses from the drop in Hubersuhner's long position.Amundi Index vs. Baloise Holding AG | Amundi Index vs. 21Shares Polkadot ETP | Amundi Index vs. UBS ETF MSCI | Amundi Index vs. BB Biotech AG |
Hubersuhner vs. Bucher Industries AG | Hubersuhner vs. Komax Holding AG | Hubersuhner vs. Comet Holding AG | Hubersuhner vs. Bachem Holding AG |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
CEOs Directory Screen CEOs from public companies around the world | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |