Correlation Between Amundi CAC and Invesco Markets
Can any of the company-specific risk be diversified away by investing in both Amundi CAC and Invesco Markets 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 Invesco Markets 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 Invesco Markets III, you can compare the effects of market volatilities on Amundi CAC and Invesco Markets 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 Invesco Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi CAC and Invesco Markets.
Diversification Opportunities for Amundi CAC and Invesco Markets
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and Invesco is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amundi CAC 40 and Invesco Markets III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Markets III 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 Invesco Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Markets III has no effect on the direction of Amundi CAC i.e., Amundi CAC and Invesco Markets go up and down completely randomly.
Pair Corralation between Amundi CAC and Invesco Markets
Assuming the 90 days trading horizon Amundi CAC is expected to generate 3.35 times less return on investment than Invesco Markets. But when comparing it to its historical volatility, Amundi CAC 40 is 3.89 times less risky than Invesco Markets. It trades about 0.04 of its potential returns per unit of risk. Invesco Markets III is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 723.00 in Invesco Markets III on August 25, 2024 and sell it today you would earn a total of 138.00 from holding Invesco Markets III or generate 19.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 73.12% |
| Values | Daily Returns |
Amundi CAC 40 vs. Invesco Markets III
Performance |
| Timeline |
| Amundi CAC 40 |
| Invesco Markets III |
Amundi CAC and Invesco Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi CAC and Invesco Markets
The main advantage of trading using opposite Amundi CAC and Invesco Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi CAC position performs unexpectedly, Invesco Markets 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 Invesco Markets will offset losses from the drop in Invesco Markets' 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 |
| Invesco Markets vs. Invesco FTSE RAFI | Invesco Markets vs. Invesco SP 500 | Invesco Markets vs. Invesco Markets III | Invesco Markets vs. Invesco FTSE RAFI |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |