Correlation Between Ekinops SA and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Amundi Index 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 Ekinops SA and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Amundi Index Solutions, you can compare the effects of market volatilities on Ekinops SA and Amundi Index 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 Ekinops SA with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Amundi Index.
Diversification Opportunities for Ekinops SA and Amundi Index
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ekinops and Amundi is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and Ekinops SA 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 Ekinops SA are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Ekinops SA i.e., Ekinops SA and Amundi Index go up and down completely randomly.
Pair Corralation between Ekinops SA and Amundi Index
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Amundi Index. In addition to that, Ekinops SA is 14.59 times more volatile than Amundi Index Solutions. It trades about -0.25 of its total potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.27 per unit of volatility. If you would invest 24,796 in Amundi Index Solutions on September 1, 2024 and sell it today you would earn a total of 246.00 from holding Amundi Index Solutions or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ekinops SA vs. Amundi Index Solutions
Performance |
| Timeline |
| Ekinops SA |
| Amundi Index Solutions |
Ekinops SA and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Amundi Index
The main advantage of trading using opposite Ekinops SA and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
| Amundi Index vs. Lyxor MSCI China | Amundi Index vs. Manitou BF SA | Amundi Index vs. Ossiam Minimum Variance | Amundi Index vs. Granite 3x LVMH |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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