Correlation Between Amundi CAC and IShares China
Can any of the company-specific risk be diversified away by investing in both Amundi CAC and IShares China 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 IShares China 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 iShares China CNY, you can compare the effects of market volatilities on Amundi CAC and IShares China 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 IShares China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi CAC and IShares China.
Diversification Opportunities for Amundi CAC and IShares China
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and IShares is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Amundi CAC 40 and iShares China CNY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares China CNY 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 IShares China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares China CNY has no effect on the direction of Amundi CAC i.e., Amundi CAC and IShares China go up and down completely randomly.
Pair Corralation between Amundi CAC and IShares China
Assuming the 90 days trading horizon Amundi CAC 40 is expected to generate 1.42 times more return on investment than IShares China. However, Amundi CAC is 1.42 times more volatile than iShares China CNY. It trades about 0.18 of its potential returns per unit of risk. iShares China CNY is currently generating about 0.26 per unit of risk. If you would invest 7,106 in Amundi CAC 40 on September 20, 2024 and sell it today you would earn a total of 161.00 from holding Amundi CAC 40 or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amundi CAC 40 vs. iShares China CNY
Performance |
| Timeline |
| Amundi CAC 40 |
| iShares China CNY |
Amundi CAC and IShares China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi CAC and IShares China
The main advantage of trading using opposite Amundi CAC and IShares China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi CAC position performs unexpectedly, IShares China 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 IShares China will offset losses from the drop in IShares China'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 |
| IShares China vs. Lyxor UCITS Japan | IShares China vs. Lyxor UCITS Japan | IShares China vs. Lyxor UCITS Stoxx | IShares China vs. Amundi CAC 40 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |