Correlation Between Ekinops SA and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Amundi MSCI 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 MSCI 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 MSCI EMU, you can compare the effects of market volatilities on Ekinops SA and Amundi MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Amundi MSCI.
Diversification Opportunities for Ekinops SA and Amundi MSCI
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ekinops and Amundi is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Amundi MSCI EMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI EMU 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI EMU has no effect on the direction of Ekinops SA i.e., Ekinops SA and Amundi MSCI go up and down completely randomly.
Pair Corralation between Ekinops SA and Amundi MSCI
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Amundi MSCI. In addition to that, Ekinops SA is 2.99 times more volatile than Amundi MSCI EMU. It trades about -0.04 of its total potential returns per unit of risk. Amundi MSCI EMU is currently generating about 0.03 per unit of volatility. If you would invest 29,960 in Amundi MSCI EMU on August 29, 2024 and sell it today you would earn a total of 4,008 from holding Amundi MSCI EMU or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Amundi MSCI EMU
Performance |
| Timeline |
| Ekinops SA |
| Amundi MSCI EMU |
Ekinops SA and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Amundi MSCI
The main advantage of trading using opposite Ekinops SA and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Amundi MSCI 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 MSCI will offset losses from the drop in Amundi MSCI's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
| Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Manitou BF SA | Amundi MSCI vs. Ossiam Minimum Variance | Amundi MSCI vs. Ekinops SA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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