Correlation Between Invesco EQQQ and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Invesco EQQQ and Amundi ETF 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 ETF 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 ETF PEA, you can compare the effects of market volatilities on Invesco EQQQ and Amundi ETF 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 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco EQQQ and Amundi ETF.
Diversification Opportunities for Invesco EQQQ and Amundi ETF
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Invesco and Amundi is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Invesco EQQQ NASDAQ 100 and Amundi ETF PEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF PEA 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 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF PEA has no effect on the direction of Invesco EQQQ i.e., Invesco EQQQ and Amundi ETF go up and down completely randomly.
Pair Corralation between Invesco EQQQ and Amundi ETF
Assuming the 90 days trading horizon Invesco EQQQ is expected to generate 1.09 times less return on investment than Amundi ETF. In addition to that, Invesco EQQQ is 1.11 times more volatile than Amundi ETF PEA. It trades about 0.29 of its total potential returns per unit of risk. Amundi ETF PEA is currently generating about 0.34 per unit of volatility. If you would invest 4,339 in Amundi ETF PEA on September 1, 2024 and sell it today you would earn a total of 360.00 from holding Amundi ETF PEA or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Invesco EQQQ NASDAQ 100 vs. Amundi ETF PEA
Performance |
| Timeline |
| Invesco EQQQ NASDAQ |
| Amundi ETF PEA |
Invesco EQQQ and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco EQQQ and Amundi ETF
The main advantage of trading using opposite Invesco EQQQ and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco EQQQ position performs unexpectedly, Amundi ETF 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 ETF will offset losses from the drop in Amundi ETF's long position.| Invesco EQQQ vs. Multi Units France | Invesco EQQQ vs. Lyxor MSCI China | Invesco EQQQ vs. Lyxor Commodities RefinitivCoreCommodity | Invesco EQQQ vs. Manitou BF SA |
| Amundi ETF vs. Multi Units France | Amundi ETF vs. Lyxor MSCI China | Amundi ETF vs. Lyxor Commodities RefinitivCoreCommodity | Amundi ETF vs. Manitou BF 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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