Correlation Between Amundi Euro and Dow Jones
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By analyzing existing cross correlation between Amundi Euro Stoxx and Dow Jones Industrial, you can compare the effects of market volatilities on Amundi Euro and Dow Jones 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 Euro with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Euro and Dow Jones.
Diversification Opportunities for Amundi Euro and Dow Jones
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and Dow is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Euro Stoxx and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Amundi Euro 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 Euro Stoxx are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Amundi Euro i.e., Amundi Euro and Dow Jones go up and down completely randomly.
Pair Corralation between Amundi Euro and Dow Jones
Assuming the 90 days trading horizon Amundi Euro Stoxx is expected to under-perform the Dow Jones. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Euro Stoxx is 1.16 times less risky than Dow Jones. The etf trades about -0.2 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 4,223,305 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 248,901 from holding Dow Jones Industrial or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Euro Stoxx vs. Dow Jones Industrial
Performance |
| Timeline |
Amundi Euro and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Amundi Euro Stoxx
Pair trading matchups for Amundi Euro
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Amundi Euro and Dow Jones
The main advantage of trading using opposite Amundi Euro and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Euro position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Amundi Euro vs. Amundi MSCI Europe | Amundi Euro vs. Amundi SP 500 | Amundi Euro vs. Amundi Index Solutions | Amundi Euro vs. Amundi Index Solutions |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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