Correlation Between Amundi Index and Amundi SP
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Amundi SP 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 Index and Amundi SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and Amundi SP Global, you can compare the effects of market volatilities on Amundi Index and Amundi SP 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 Index with a short position of Amundi SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Amundi SP.
Diversification Opportunities for Amundi Index and Amundi SP
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amundi and Amundi is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Amundi SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi SP Global and Amundi Index 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 Index Solutions are associated (or correlated) with Amundi SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi SP Global has no effect on the direction of Amundi Index i.e., Amundi Index and Amundi SP go up and down completely randomly.
Pair Corralation between Amundi Index and Amundi SP
Assuming the 90 days trading horizon Amundi Index is expected to generate 3.34 times less return on investment than Amundi SP. But when comparing it to its historical volatility, Amundi Index Solutions is 4.88 times less risky than Amundi SP. It trades about 0.48 of its potential returns per unit of risk. Amundi SP Global is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,115 in Amundi SP Global on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Amundi SP Global or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Amundi SP Global
Performance |
| Timeline |
| Amundi Index Solutions |
| Amundi SP Global |
Amundi Index and Amundi SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Amundi SP
The main advantage of trading using opposite Amundi Index and Amundi SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Amundi SP 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 SP will offset losses from the drop in Amundi SP's long position.| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Manitou BF SA | Amundi Index vs. 21Shares Polkadot ETP | Amundi Index vs. Ekinops SA |
| Amundi SP vs. Amundi Index Solutions | Amundi SP vs. Amundi Index Solutions | Amundi SP vs. Amundi MSCI World | Amundi SP 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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