Correlation Between Ford and Amundi Nasdaq
Can any of the company-specific risk be diversified away by investing in both Ford and Amundi Nasdaq 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 Ford and Amundi Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Amundi Nasdaq 100 EUR, you can compare the effects of market volatilities on Ford and Amundi Nasdaq 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 Ford with a short position of Amundi Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Amundi Nasdaq.
Diversification Opportunities for Ford and Amundi Nasdaq
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and Amundi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Amundi Nasdaq 100 EUR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Nasdaq 100 and Ford 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 Ford Motor are associated (or correlated) with Amundi Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Nasdaq 100 has no effect on the direction of Ford i.e., Ford and Amundi Nasdaq go up and down completely randomly.
Pair Corralation between Ford and Amundi Nasdaq
If you would invest 0.00 in Amundi Nasdaq 100 EUR on October 7, 2024 and sell it today you would earn a total of 0.00 from holding Amundi Nasdaq 100 EUR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Ford Motor vs. Amundi Nasdaq 100 EUR
Performance |
| Timeline |
| Ford Motor |
| Amundi Nasdaq 100 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Ford and Amundi Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Amundi Nasdaq
The main advantage of trading using opposite Ford and Amundi Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Amundi Nasdaq 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 Nasdaq will offset losses from the drop in Amundi Nasdaq's long position.The idea behind Ford Motor and Amundi Nasdaq 100 EUR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amundi Nasdaq vs. Amundi Index Solutions | Amundi Nasdaq vs. Amundi Index Solutions | Amundi Nasdaq vs. Amundi MSCI World | Amundi Nasdaq 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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