Correlation Between International Business and Amundi Treasury
Can any of the company-specific risk be diversified away by investing in both International Business and Amundi Treasury 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 International Business and Amundi Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Amundi Treasury Bond, you can compare the effects of market volatilities on International Business and Amundi Treasury 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 International Business with a short position of Amundi Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Amundi Treasury.
Diversification Opportunities for International Business and Amundi Treasury
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Amundi is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Amundi Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Treasury Bond and International Business 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 International Business Machines are associated (or correlated) with Amundi Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Treasury Bond has no effect on the direction of International Business i.e., International Business and Amundi Treasury go up and down completely randomly.
Pair Corralation between International Business and Amundi Treasury
If you would invest 11,895 in International Business Machines on August 28, 2024 and sell it today you would earn a total of 0.00 from holding International Business Machines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.69% |
| Values | Daily Returns |
International Business Machine vs. Amundi Treasury Bond
Performance |
| Timeline |
| International Business |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amundi Treasury Bond |
International Business and Amundi Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Amundi Treasury
The main advantage of trading using opposite International Business and Amundi Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Amundi Treasury 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 Treasury will offset losses from the drop in Amundi Treasury's long position.| International Business vs. Scandinavian Tobacco Group | International Business vs. Lundin Mining Corp | International Business vs. JD Sports Fashion | International Business vs. Caledonia Mining |
| Amundi Treasury vs. Leverage Shares 3x | Amundi Treasury vs. WisdomTree SP 500 | Amundi Treasury vs. WisdomTree Silver 3x | Amundi Treasury vs. Leverage Shares 3x |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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