Correlation Between EasyETF BNP and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both EasyETF BNP 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 EasyETF BNP and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EasyETF BNP and Amundi ETF PEA, you can compare the effects of market volatilities on EasyETF BNP 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 EasyETF BNP with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of EasyETF BNP and Amundi ETF.
Diversification Opportunities for EasyETF BNP and Amundi ETF
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EasyETF and Amundi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding EasyETF BNP 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 EasyETF BNP 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 EasyETF BNP 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 EasyETF BNP i.e., EasyETF BNP and Amundi ETF go up and down completely randomly.
Pair Corralation between EasyETF BNP and Amundi ETF
Assuming the 90 days trading horizon EasyETF BNP is expected to under-perform the Amundi ETF. In addition to that, EasyETF BNP is 1.16 times more volatile than Amundi ETF PEA. It trades about -0.19 of its total potential returns per unit of risk. Amundi ETF PEA is currently generating about -0.06 per unit of volatility. If you would invest 2,372 in Amundi ETF PEA on January 17, 2025 and sell it today you would lose (150.00) from holding Amundi ETF PEA or give up 6.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EasyETF BNP vs. Amundi ETF PEA
Performance |
| Timeline |
| EasyETF BNP |
| Amundi ETF PEA |
EasyETF BNP and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EasyETF BNP and Amundi ETF
The main advantage of trading using opposite EasyETF BNP and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EasyETF BNP 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.| EasyETF BNP vs. Amundi ETF PEA | EasyETF BNP vs. Amundi Index Solutions | EasyETF BNP vs. Amundi ETF PEA | EasyETF BNP vs. Amundi Index Solutions |
| Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi ETF PEA |
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 Stocks Directory module to find actively traded stocks across global markets.
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