Correlation Between Amundi SP and Amundi SP
Can any of the company-specific risk be diversified away by investing in both Amundi SP and Amundi SP 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 SP and Amundi SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi SP 500 and Amundi SP 500, you can compare the effects of market volatilities on Amundi SP and Amundi SP 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 SP with a short position of Amundi SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SP and Amundi SP.
Diversification Opportunities for Amundi SP and Amundi SP
Very poor diversification
The 3 months correlation between Amundi and Amundi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SP 500 and Amundi SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi SP 500 and Amundi SP 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 SP 500 are associated (or correlated) with Amundi SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi SP 500 has no effect on the direction of Amundi SP i.e., Amundi SP and Amundi SP go up and down completely randomly.
Pair Corralation between Amundi SP and Amundi SP
Assuming the 90 days trading horizon Amundi SP is expected to generate 1.05 times less return on investment than Amundi SP. In addition to that, Amundi SP is 1.21 times more volatile than Amundi SP 500. It trades about 0.12 of its total potential returns per unit of risk. Amundi SP 500 is currently generating about 0.15 per unit of volatility. If you would invest 14,077 in Amundi SP 500 on August 26, 2024 and sell it today you would earn a total of 2,448 from holding Amundi SP 500 or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi SP 500 vs. Amundi SP 500
Performance |
| Timeline |
| Amundi SP 500 |
| Amundi SP 500 |
Amundi SP and Amundi SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SP and Amundi SP
The main advantage of trading using opposite Amundi SP and Amundi SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SP position performs unexpectedly, Amundi SP 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 SP will offset losses from the drop in Amundi SP's long position.| Amundi SP vs. BNP Paribas Easy | Amundi SP vs. Amundi Index Solutions | Amundi SP vs. BNP Paribas Easy | Amundi SP vs. BNP Paribas Easy |
| Amundi SP vs. Amundi Index Solutions | Amundi SP vs. Amundi Index Solutions | Amundi SP vs. Amundi Index Solutions | Amundi SP vs. Amundi SP 500 |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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