Correlation Between Eic Value and Amundi Climate
Can any of the company-specific risk be diversified away by investing in both Eic Value and Amundi Climate 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 Eic Value and Amundi Climate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Amundi Climate Transition, you can compare the effects of market volatilities on Eic Value and Amundi Climate 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 Eic Value with a short position of Amundi Climate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Amundi Climate.
Diversification Opportunities for Eic Value and Amundi Climate
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eic and Amundi is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Amundi Climate Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Climate Transition and Eic Value 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 Eic Value Fund are associated (or correlated) with Amundi Climate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Climate Transition has no effect on the direction of Eic Value i.e., Eic Value and Amundi Climate go up and down completely randomly.
Pair Corralation between Eic Value and Amundi Climate
Assuming the 90 days horizon Eic Value Fund is expected to generate 1.61 times more return on investment than Amundi Climate. However, Eic Value is 1.61 times more volatile than Amundi Climate Transition. It trades about 0.31 of its potential returns per unit of risk. Amundi Climate Transition is currently generating about 0.1 per unit of risk. If you would invest 1,845 in Eic Value Fund on September 1, 2024 and sell it today you would earn a total of 77.00 from holding Eic Value Fund or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eic Value Fund vs. Amundi Climate Transition
Performance |
| Timeline |
| Eic Value Fund |
| Amundi Climate Transition |
Eic Value and Amundi Climate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Amundi Climate
The main advantage of trading using opposite Eic Value and Amundi Climate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Amundi Climate 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 Climate will offset losses from the drop in Amundi Climate's long position.| Eic Value vs. Us Global Leaders | Eic Value vs. Rbc Global Opportunities | Eic Value vs. Artisan Global Unconstrained | Eic Value vs. Ab Global Risk |
| Amundi Climate vs. Pioneer Fundamental Growth | Amundi Climate vs. Pioneer Global Equity | Amundi Climate vs. Pioneer Disciplined Value | Amundi Climate vs. Pioneer Disciplined Value |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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