Correlation Between Amundi CAC and 21Shares Aave
Can any of the company-specific risk be diversified away by investing in both Amundi CAC and 21Shares Aave 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 CAC and 21Shares Aave into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi CAC 40 and 21Shares Aave ETP, you can compare the effects of market volatilities on Amundi CAC and 21Shares Aave 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 CAC with a short position of 21Shares Aave. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi CAC and 21Shares Aave.
Diversification Opportunities for Amundi CAC and 21Shares Aave
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amundi and 21Shares is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Amundi CAC 40 and 21Shares Aave ETP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Aave ETP and Amundi CAC 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 CAC 40 are associated (or correlated) with 21Shares Aave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Aave ETP has no effect on the direction of Amundi CAC i.e., Amundi CAC and 21Shares Aave go up and down completely randomly.
Pair Corralation between Amundi CAC and 21Shares Aave
Assuming the 90 days trading horizon Amundi CAC is expected to generate 170.68 times less return on investment than 21Shares Aave. But when comparing it to its historical volatility, Amundi CAC 40 is 7.5 times less risky than 21Shares Aave. It trades about 0.0 of its potential returns per unit of risk. 21Shares Aave ETP is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,194 in 21Shares Aave ETP on October 22, 2024 and sell it today you would earn a total of 2,580 from holding 21Shares Aave ETP or generate 216.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.13% |
| Values | Daily Returns |
Amundi CAC 40 vs. 21Shares Aave ETP
Performance |
| Timeline |
| Amundi CAC 40 |
| 21Shares Aave ETP |
Amundi CAC and 21Shares Aave Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi CAC and 21Shares Aave
The main advantage of trading using opposite Amundi CAC and 21Shares Aave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi CAC position performs unexpectedly, 21Shares Aave 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 21Shares Aave will offset losses from the drop in 21Shares Aave's long position.| Amundi CAC vs. Deutsche Telekom AG | Amundi CAC vs. Volkswagen AG | Amundi CAC vs. Bayerische Motoren Werke | Amundi CAC vs. Mnchener Rck AG |
| 21Shares Aave vs. 21Shares Crypto Basket | 21Shares Aave vs. 21Shares Decentraland ETP | 21Shares Aave vs. 21Shares Uniswap ETP | 21Shares Aave vs. 21Shares Crypto Mid Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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