Correlation Between Amundi CAC and ETHetc ETC
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amundi CAC 40 vs. ETHetc ETC
Performance |
Timeline |
Amundi CAC 40 |
ETHetc ETC |
Amundi CAC and ETHetc ETC Volatility Contrast
Predicted Return Density |
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.Amundi CAC vs. Lyxor UCITS Japan | ||
Amundi CAC vs. Lyxor UCITS Japan | ||
Amundi CAC vs. Lyxor UCITS Stoxx | ||
Amundi CAC vs. Gold Bullion Securities |
ETHetc ETC vs. Amundi Index Solutions | ||
ETHetc ETC vs. Multi Units Luxembourg | ||
ETHetc ETC vs. iShares Digital Entertainment | ||
ETHetc ETC 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 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 |