Correlation Between Sancus Lending and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Sancus Lending and Amundi Index 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 Sancus Lending and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sancus Lending Group and Amundi Index Solutions, you can compare the effects of market volatilities on Sancus Lending and Amundi Index 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 Sancus Lending with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sancus Lending and Amundi Index.
Diversification Opportunities for Sancus Lending and Amundi Index
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sancus and Amundi is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sancus Lending Group and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and Sancus Lending 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 Sancus Lending Group are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Sancus Lending i.e., Sancus Lending and Amundi Index go up and down completely randomly.
Pair Corralation between Sancus Lending and Amundi Index
Assuming the 90 days trading horizon Sancus Lending Group is expected to under-perform the Amundi Index. In addition to that, Sancus Lending is 5.81 times more volatile than Amundi Index Solutions. It trades about -0.14 of its total potential returns per unit of risk. Amundi Index Solutions is currently generating about -0.15 per unit of volatility. If you would invest 4,334 in Amundi Index Solutions on August 30, 2024 and sell it today you would lose (322.00) from holding Amundi Index Solutions or give up 7.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Sancus Lending Group vs. Amundi Index Solutions
Performance |
| Timeline |
| Sancus Lending Group |
| Amundi Index Solutions |
Sancus Lending and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sancus Lending and Amundi Index
The main advantage of trading using opposite Sancus Lending and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sancus Lending position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| Sancus Lending vs. Southwest Airlines Co | Sancus Lending vs. Everyman Media Group | Sancus Lending vs. Infrastrutture Wireless Italiane | Sancus Lending vs. Prosiebensat 1 Media |
| Amundi Index vs. GraniteShares 3x Short | Amundi Index vs. WisdomTree Natural Gas | Amundi Index vs. Leverage Shares 3x | Amundi Index vs. WisdomTree Natural Gas |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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