Correlation Between Amundi CAC and Amundi Nasdaq
Can any of the company-specific risk be diversified away by investing in both Amundi CAC and Amundi Nasdaq 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 Nasdaq 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 Nasdaq 100 EUR, you can compare the effects of market volatilities on Amundi CAC and Amundi Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi CAC and Amundi Nasdaq.
Diversification Opportunities for Amundi CAC and Amundi Nasdaq
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and Amundi is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Amundi CAC 40 and Amundi Nasdaq 100 EUR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Nasdaq 100 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Nasdaq 100 has no effect on the direction of Amundi CAC i.e., Amundi CAC and Amundi Nasdaq go up and down completely randomly.
Pair Corralation between Amundi CAC and Amundi Nasdaq
Assuming the 90 days trading horizon Amundi CAC 40 is expected to under-perform the Amundi Nasdaq. But the etf apears to be less risky and, when comparing its historical volatility, Amundi CAC 40 is 1.16 times less risky than Amundi Nasdaq. The etf trades about -0.06 of its potential returns per unit of risk. The Amundi Nasdaq 100 EUR is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 47,705 in Amundi Nasdaq 100 EUR on September 13, 2024 and sell it today you would earn a total of 2,925 from holding Amundi Nasdaq 100 EUR or generate 6.13% 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. Amundi Nasdaq 100 EUR
Performance |
| Timeline |
| Amundi CAC 40 |
| Amundi Nasdaq 100 |
Amundi CAC and Amundi Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi CAC and Amundi Nasdaq
The main advantage of trading using opposite Amundi CAC and Amundi Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi CAC position performs unexpectedly, Amundi Nasdaq 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 Nasdaq will offset losses from the drop in Amundi Nasdaq's long position.| Amundi CAC vs. Lyxor UCITS Japan | Amundi CAC vs. Lyxor UCITS Japan | Amundi CAC vs. Lyxor UCITS Stoxx | Amundi CAC vs. Gold Bullion Securities |
| Amundi Nasdaq vs. Amundi Index Solutions | Amundi Nasdaq vs. Amundi Index Solutions | Amundi Nasdaq vs. Amundi MSCI World | Amundi Nasdaq vs. Amundi Index Solutions |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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