Correlation Between Amundi Index and HAN GINS
Can any of the company-specific risk be diversified away by investing in both Amundi Index and HAN GINS 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 HAN GINS 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 HAN GINS Tech Megatrend, you can compare the effects of market volatilities on Amundi Index and HAN GINS 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 HAN GINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and HAN GINS.
Diversification Opportunities for Amundi Index and HAN GINS
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and HAN is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and HAN GINS Tech Megatrend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAN GINS Tech 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 HAN GINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAN GINS Tech has no effect on the direction of Amundi Index i.e., Amundi Index and HAN GINS go up and down completely randomly.
Pair Corralation between Amundi Index and HAN GINS
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the HAN GINS. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Index Solutions is 1.77 times less risky than HAN GINS. The etf trades about -0.37 of its potential returns per unit of risk. The HAN GINS Tech Megatrend is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,479 in HAN GINS Tech Megatrend on October 12, 2024 and sell it today you would lose (65.00) from holding HAN GINS Tech Megatrend or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. HAN GINS Tech Megatrend
Performance |
| Timeline |
| Amundi Index Solutions |
| HAN GINS Tech |
Amundi Index and HAN GINS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and HAN GINS
The main advantage of trading using opposite Amundi Index and HAN GINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, HAN GINS 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 HAN GINS will offset losses from the drop in HAN GINS's long position.| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions |
| HAN GINS vs. HAN GINS Indxx Healthcare | HAN GINS vs. Amundi Index Solutions | HAN GINS vs. Multi Units Luxembourg | HAN GINS vs. iShares Digital Entertainment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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