Correlation Between Amundi CAC and ETHetc ETC

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amundi CAC and ETHetc ETC 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 ETHetc ETC 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 ETHetc ETC, you can compare the effects of market volatilities on Amundi CAC and ETHetc ETC 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 ETHetc ETC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi CAC and ETHetc ETC.

Diversification Opportunities for Amundi CAC and ETHetc ETC

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Amundi and ETHetc is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Amundi CAC 40 and ETHetc ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETHetc ETC 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 ETHetc ETC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETHetc ETC has no effect on the direction of Amundi CAC i.e., Amundi CAC and ETHetc ETC go up and down completely randomly.

Pair Corralation between Amundi CAC and ETHetc ETC

Assuming the 90 days trading horizon Amundi CAC 40 is expected to generate 0.16 times more return on investment than ETHetc ETC. However, Amundi CAC 40 is 6.13 times less risky than ETHetc ETC. It trades about 0.16 of its potential returns per unit of risk. ETHetc ETC is currently generating about -0.03 per unit of risk. If you would invest  7,029  in Amundi CAC 40 on September 28, 2024 and sell it today you would earn a total of  138.00  from holding Amundi CAC 40 or generate 1.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Amundi CAC 40  vs.  ETHetc ETC

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -100102030405060
JavaScript chart by amCharts 3.21.15CAC ZETH
       Timeline  
Amundi CAC 40 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amundi CAC 40 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Amundi CAC is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecDec707172737475
ETHetc ETC 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in ETHetc ETC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, ETHetc ETC sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecDec202224262830323436

Amundi CAC and ETHetc ETC Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.36-1.02-0.68-0.34-0.05120.140.480.821.161.5 0.10.20.30.40.5
JavaScript chart by amCharts 3.21.15CAC ZETH
       Returns  

Pair Trading with Amundi CAC and ETHetc ETC

The main advantage of trading using opposite Amundi CAC and ETHetc ETC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi CAC position performs unexpectedly, ETHetc ETC 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 ETHetc ETC will offset losses from the drop in ETHetc ETC's long position.
The idea behind Amundi CAC 40 and ETHetc ETC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Other Complementary Tools

Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators


 

Discover investing ideas

Utilize additional investing modules