Correlation Between Amundi Index and X Fab
Can any of the company-specific risk be diversified away by investing in both Amundi Index and X Fab 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 X Fab 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 X Fab Silicon, you can compare the effects of market volatilities on Amundi Index and X Fab 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 X Fab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and X Fab.
Diversification Opportunities for Amundi Index and X Fab
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amundi and XFAB is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and X Fab Silicon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Fab Silicon 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 X Fab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Fab Silicon has no effect on the direction of Amundi Index i.e., Amundi Index and X Fab go up and down completely randomly.
Pair Corralation between Amundi Index and X Fab
Assuming the 90 days trading horizon Amundi Index is expected to generate 1.57 times less return on investment than X Fab. But when comparing it to its historical volatility, Amundi Index Solutions is 11.03 times less risky than X Fab. It trades about 0.44 of its potential returns per unit of risk. X Fab Silicon is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 437.00 in X Fab Silicon on September 1, 2024 and sell it today you would earn a total of 13.00 from holding X Fab Silicon or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. X Fab Silicon
Performance |
| Timeline |
| Amundi Index Solutions |
| X Fab Silicon |
Amundi Index and X Fab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and X Fab
The main advantage of trading using opposite Amundi Index and X Fab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, X Fab 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 X Fab will offset losses from the drop in X Fab's long position.| Amundi Index vs. Lyxor MSCI China | Amundi Index vs. Manitou BF SA | Amundi Index vs. Ossiam Minimum Variance | Amundi Index vs. Granite 3x LVMH |
| X Fab vs. Chargeurs SA | X Fab vs. Straumann Holding AG | X Fab vs. Manitou BF SA | X Fab 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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