Correlation Between Amundi CAC and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Amundi CAC and Amundi ETF 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 ETF 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 ETF PEA, you can compare the effects of market volatilities on Amundi CAC and Amundi ETF 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 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi CAC and Amundi ETF.
Diversification Opportunities for Amundi CAC and Amundi ETF
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and Amundi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Amundi CAC 40 and Amundi ETF PEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF PEA 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 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF PEA has no effect on the direction of Amundi CAC i.e., Amundi CAC and Amundi ETF go up and down completely randomly.
Pair Corralation between Amundi CAC and Amundi ETF
Assuming the 90 days trading horizon Amundi CAC 40 is expected to under-perform the Amundi ETF. But the etf apears to be less risky and, when comparing its historical volatility, Amundi CAC 40 is 1.27 times less risky than Amundi ETF. The etf trades about -0.17 of its potential returns per unit of risk. The Amundi ETF PEA is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 4,430 in Amundi ETF PEA on August 25, 2024 and sell it today you would earn a total of 276.00 from holding Amundi ETF PEA or generate 6.23% 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 ETF PEA
Performance |
| Timeline |
| Amundi CAC 40 |
| Amundi ETF PEA |
Amundi CAC and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi CAC and Amundi ETF
The main advantage of trading using opposite Amundi CAC and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi CAC position performs unexpectedly, Amundi ETF 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 ETF will offset losses from the drop in Amundi ETF'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 ETF vs. Lyxor UCITS Japan | Amundi ETF vs. Lyxor UCITS Japan | Amundi ETF vs. Lyxor UCITS Stoxx | Amundi ETF 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |