Correlation Between Invesco EQQQ and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Invesco EQQQ 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 Invesco EQQQ and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco EQQQ NASDAQ 100 and Amundi Index Solutions, you can compare the effects of market volatilities on Invesco EQQQ 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 Invesco EQQQ with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco EQQQ and Amundi Index.
Diversification Opportunities for Invesco EQQQ and Amundi Index
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Invesco and Amundi is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Invesco EQQQ NASDAQ 100 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 Invesco EQQQ 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 Invesco EQQQ NASDAQ 100 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 Invesco EQQQ i.e., Invesco EQQQ and Amundi Index go up and down completely randomly.
Pair Corralation between Invesco EQQQ and Amundi Index
Assuming the 90 days trading horizon Invesco EQQQ NASDAQ 100 is expected to generate 1.28 times more return on investment than Amundi Index. However, Invesco EQQQ is 1.28 times more volatile than Amundi Index Solutions. It trades about 0.12 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.05 per unit of risk. If you would invest 25,960 in Invesco EQQQ NASDAQ 100 on September 5, 2024 and sell it today you would earn a total of 23,370 from holding Invesco EQQQ NASDAQ 100 or generate 90.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco EQQQ NASDAQ 100 vs. Amundi Index Solutions
Performance |
| Timeline |
| Invesco EQQQ NASDAQ |
| Amundi Index Solutions |
Invesco EQQQ and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco EQQQ and Amundi Index
The main advantage of trading using opposite Invesco EQQQ and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco EQQQ 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.| Invesco EQQQ vs. Amundi Index Solutions | Invesco EQQQ vs. Manitou BF SA | Invesco EQQQ vs. 21Shares Polkadot ETP | Invesco EQQQ vs. Ekinops SA |
| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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