Correlation Between Amundi CAC and Amundi German
Can any of the company-specific risk be diversified away by investing in both Amundi CAC and Amundi German 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 Amundi German 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 Amundi German Bund, you can compare the effects of market volatilities on Amundi CAC and Amundi German 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 Amundi German. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi CAC and Amundi German.
Diversification Opportunities for Amundi CAC and Amundi German
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amundi and Amundi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amundi CAC 40 and Amundi German Bund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi German Bund 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 Amundi German. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi German Bund has no effect on the direction of Amundi CAC i.e., Amundi CAC and Amundi German go up and down completely randomly.
Pair Corralation between Amundi CAC and Amundi German
Assuming the 90 days trading horizon Amundi CAC is expected to generate 1.29 times less return on investment than Amundi German. In addition to that, Amundi CAC is 1.19 times more volatile than Amundi German Bund. It trades about 0.03 of its total potential returns per unit of risk. Amundi German Bund is currently generating about 0.04 per unit of volatility. If you would invest 3,914 in Amundi German Bund on December 4, 2024 and sell it today you would earn a total of 279.00 from holding Amundi German Bund or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi CAC 40 vs. Amundi German Bund
Performance |
| Timeline |
| Amundi CAC 40 |
| Amundi German Bund |
Amundi CAC and Amundi German Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi CAC and Amundi German
The main advantage of trading using opposite Amundi CAC and Amundi German positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi CAC position performs unexpectedly, Amundi German 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 German will offset losses from the drop in Amundi German'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 |
| Amundi German vs. Lyxor UCITS CAC | Amundi German vs. Lyxor UCITS Stoxx | Amundi German vs. Lyxor UCITS Daily | Amundi German vs. Lyxor 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |