Correlation Between Amundi CAC and IShares Digital
Can any of the company-specific risk be diversified away by investing in both Amundi CAC and IShares Digital 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 Digital 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 Digital Entertainment, you can compare the effects of market volatilities on Amundi CAC and IShares Digital 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 Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi CAC and IShares Digital.
Diversification Opportunities for Amundi CAC and IShares Digital
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and IShares is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amundi CAC 40 and iShares Digital Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Digital Ente 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 Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Digital Ente has no effect on the direction of Amundi CAC i.e., Amundi CAC and IShares Digital go up and down completely randomly.
Pair Corralation between Amundi CAC and IShares Digital
Assuming the 90 days trading horizon Amundi CAC 40 is expected to under-perform the IShares Digital. But the etf apears to be less risky and, when comparing its historical volatility, Amundi CAC 40 is 1.02 times less risky than IShares Digital. The etf trades about -0.19 of its potential returns per unit of risk. The iShares Digital Entertainment is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 791.00 in iShares Digital Entertainment on August 24, 2024 and sell it today you would earn a total of 69.00 from holding iShares Digital Entertainment or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi CAC 40 vs. iShares Digital Entertainment
Performance |
| Timeline |
| Amundi CAC 40 |
| iShares Digital Ente |
Amundi CAC and IShares Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi CAC and IShares Digital
The main advantage of trading using opposite Amundi CAC and IShares Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi CAC position performs unexpectedly, IShares Digital 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 Digital will offset losses from the drop in IShares Digital'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 Digital vs. Lyxor UCITS Japan | IShares Digital vs. Lyxor UCITS Japan | IShares Digital vs. Lyxor UCITS Stoxx | IShares Digital 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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