Correlation Between Amundi Index and Amundi Stoxx
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Amundi Stoxx 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 Stoxx 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 Stoxx Europe, you can compare the effects of market volatilities on Amundi Index and Amundi Stoxx 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 Stoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Amundi Stoxx.
Diversification Opportunities for Amundi Index and Amundi Stoxx
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and Amundi is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Amundi Stoxx Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Stoxx Europe 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 Stoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Stoxx Europe has no effect on the direction of Amundi Index i.e., Amundi Index and Amundi Stoxx go up and down completely randomly.
Pair Corralation between Amundi Index and Amundi Stoxx
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 3.49 times more return on investment than Amundi Stoxx. However, Amundi Index is 3.49 times more volatile than Amundi Stoxx Europe. It trades about 0.03 of its potential returns per unit of risk. Amundi Stoxx Europe is currently generating about 0.07 per unit of risk. If you would invest 22,900 in Amundi Index Solutions on September 12, 2024 and sell it today you would earn a total of 2,690 from holding Amundi Index Solutions or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Amundi Stoxx Europe
Performance |
| Timeline |
| Amundi Index Solutions |
| Amundi Stoxx Europe |
Amundi Index and Amundi Stoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Amundi Stoxx
The main advantage of trading using opposite Amundi Index and Amundi Stoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Amundi Stoxx 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 Stoxx will offset losses from the drop in Amundi Stoxx's long position.| Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Stoxx | Amundi Index vs. Amundi CAC 40 |
| Amundi Stoxx vs. Lyxor UCITS Japan | Amundi Stoxx vs. Lyxor UCITS Japan | Amundi Stoxx vs. Lyxor UCITS Stoxx | Amundi Stoxx vs. Amundi CAC 40 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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