Correlation Between Amundi Index and Ekinops SA
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Ekinops SA 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 Ekinops SA 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 Ekinops SA, you can compare the effects of market volatilities on Amundi Index and Ekinops SA 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 Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Ekinops SA.
Diversification Opportunities for Amundi Index and Ekinops SA
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amundi and Ekinops is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops SA 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 Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of Amundi Index i.e., Amundi Index and Ekinops SA go up and down completely randomly.
Pair Corralation between Amundi Index and Ekinops SA
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.51 times more return on investment than Ekinops SA. However, Amundi Index Solutions is 1.95 times less risky than Ekinops SA. It trades about 0.32 of its potential returns per unit of risk. Ekinops SA is currently generating about -0.25 per unit of risk. If you would invest 66,472 in Amundi Index Solutions on September 1, 2024 and sell it today you would earn a total of 5,905 from holding Amundi Index Solutions or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amundi Index Solutions vs. Ekinops SA
Performance |
| Timeline |
| Amundi Index Solutions |
| Ekinops SA |
Amundi Index and Ekinops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Ekinops SA
The main advantage of trading using opposite Amundi Index and Ekinops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Ekinops SA 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 Ekinops SA will offset losses from the drop in Ekinops SA's long position.| Amundi Index vs. Multi Units France | Amundi Index vs. Lyxor MSCI China | Amundi Index vs. Manitou BF SA | Amundi Index vs. Ossiam Minimum Variance |
| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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