Correlation Between Amundi Climate and Versatile Bond
Can any of the company-specific risk be diversified away by investing in both Amundi Climate and Versatile Bond 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 Climate and Versatile Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Climate Transition and Versatile Bond Portfolio, you can compare the effects of market volatilities on Amundi Climate and Versatile Bond 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 Climate with a short position of Versatile Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Climate and Versatile Bond.
Diversification Opportunities for Amundi Climate and Versatile Bond
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amundi and Versatile is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Climate Transition and Versatile Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Versatile Bond Portfolio and Amundi Climate 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 Climate Transition are associated (or correlated) with Versatile Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Versatile Bond Portfolio has no effect on the direction of Amundi Climate i.e., Amundi Climate and Versatile Bond go up and down completely randomly.
Pair Corralation between Amundi Climate and Versatile Bond
Assuming the 90 days horizon Amundi Climate Transition is expected to generate 2.99 times more return on investment than Versatile Bond. However, Amundi Climate is 2.99 times more volatile than Versatile Bond Portfolio. It trades about 0.1 of its potential returns per unit of risk. Versatile Bond Portfolio is currently generating about 0.12 per unit of risk. If you would invest 977.00 in Amundi Climate Transition on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Amundi Climate Transition or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amundi Climate Transition vs. Versatile Bond Portfolio
Performance |
| Timeline |
| Amundi Climate Transition |
| Versatile Bond Portfolio |
Amundi Climate and Versatile Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Climate and Versatile Bond
The main advantage of trading using opposite Amundi Climate and Versatile Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Climate position performs unexpectedly, Versatile Bond 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 Versatile Bond will offset losses from the drop in Versatile Bond's long position.| Amundi Climate vs. Pioneer Fundamental Growth | Amundi Climate vs. Pioneer Global Equity | Amundi Climate vs. Pioneer Disciplined Value | Amundi Climate vs. Pioneer Disciplined Value |
| Versatile Bond vs. Short Term Treasury Portfolio | Versatile Bond vs. Aggressive Growth Portfolio | Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. Thompson Bond Fund |
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.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |