Correlation Between Amundi Physical and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Amundi Physical and GreenX Metals 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 Amundi Physical and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Physical Gold and GreenX Metals, you can compare the effects of market volatilities on Amundi Physical and GreenX Metals 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 Amundi Physical with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Physical and GreenX Metals.
Diversification Opportunities for Amundi Physical and GreenX Metals
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amundi and GreenX is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Physical Gold and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Amundi Physical 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 Amundi Physical Gold are associated (or correlated) with GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Amundi Physical i.e., Amundi Physical and GreenX Metals go up and down completely randomly.
Pair Corralation between Amundi Physical and GreenX Metals
Assuming the 90 days trading horizon Amundi Physical Gold is expected to generate 0.78 times more return on investment than GreenX Metals. However, Amundi Physical Gold is 1.28 times less risky than GreenX Metals. It trades about 0.06 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.03 per unit of risk. If you would invest 633,575 in Amundi Physical Gold on September 3, 2024 and sell it today you would earn a total of 197,950 from holding Amundi Physical Gold or generate 31.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Physical Gold vs. GreenX Metals
Performance |
| Timeline |
| Amundi Physical Gold |
| GreenX Metals |
Amundi Physical and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Physical and GreenX Metals
The main advantage of trading using opposite Amundi Physical and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Physical position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Amundi Physical vs. Sabien Technology Group | Amundi Physical vs. Smithson Investment Trust | Amundi Physical vs. Spotify Technology SA | Amundi Physical vs. K3 Business Technology |
| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Atalaya Mining | GreenX Metals vs. Central Asia Metals | GreenX Metals vs. Metals Exploration Plc |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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