Correlation Between Amundi Index and Amundi Govt
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Amundi Govt 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 Govt 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 Govt Bond, you can compare the effects of market volatilities on Amundi Index and Amundi Govt 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 Govt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Amundi Govt.
Diversification Opportunities for Amundi Index and Amundi Govt
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and Amundi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Amundi Govt Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Govt Bond 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 Govt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Govt Bond has no effect on the direction of Amundi Index i.e., Amundi Index and Amundi Govt go up and down completely randomly.
Pair Corralation between Amundi Index and Amundi Govt
If you would invest 21,309 in Amundi Index Solutions on September 2, 2024 and sell it today you would earn a total of 1,040 from holding Amundi Index Solutions or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.77% |
| Values | Daily Returns |
Amundi Index Solutions vs. Amundi Govt Bond
Performance |
| Timeline |
| Amundi Index Solutions |
| Amundi Govt Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amundi Index and Amundi Govt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Amundi Govt
The main advantage of trading using opposite Amundi Index and Amundi Govt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Amundi Govt 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 Govt will offset losses from the drop in Amundi Govt's long position.The idea behind Amundi Index Solutions and Amundi Govt Bond 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.| Amundi Govt vs. Amundi Index Solutions | Amundi Govt vs. Amundi Index Solutions | Amundi Govt vs. Amundi Index Solutions | Amundi Govt vs. Amundi SP 500 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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