Correlation Between Multi Units and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Multi Units 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 Multi Units and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Units France and Amundi ETF PEA, you can compare the effects of market volatilities on Multi Units 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 Multi Units with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Units and Amundi ETF.
Diversification Opportunities for Multi Units and Amundi ETF
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Multi and Amundi is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units France 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 Multi Units 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 Multi Units France 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 Multi Units i.e., Multi Units and Amundi ETF go up and down completely randomly.
Pair Corralation between Multi Units and Amundi ETF
Assuming the 90 days trading horizon Multi Units France is expected to generate 1.0 times more return on investment than Amundi ETF. However, Multi Units France is 1.0 times less risky than Amundi ETF. It trades about 0.1 of its potential returns per unit of risk. Amundi ETF PEA is currently generating about 0.04 per unit of risk. If you would invest 2,312 in Multi Units France on August 31, 2024 and sell it today you would earn a total of 843.00 from holding Multi Units France or generate 36.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Units France vs. Amundi ETF PEA
Performance |
| Timeline |
| Multi Units France |
| Amundi ETF PEA |
Multi Units and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Units and Amundi ETF
The main advantage of trading using opposite Multi Units and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Units 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.| Multi Units vs. Lyxor MSCI China | Multi Units vs. Lyxor Commodities RefinitivCoreCommodity | Multi Units vs. Manitou BF SA | Multi Units vs. Ossiam Minimum Variance |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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