Correlation Between Leverage Shares and Amundi Treasury
Can any of the company-specific risk be diversified away by investing in both Leverage Shares 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 Leverage Shares and Amundi Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leverage Shares 2x and Amundi Treasury Bond, you can compare the effects of market volatilities on Leverage Shares 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 Leverage Shares with a short position of Amundi Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leverage Shares and Amundi Treasury.
Diversification Opportunities for Leverage Shares and Amundi Treasury
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leverage and Amundi is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Leverage Shares 2x 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 Leverage Shares 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 Leverage Shares 2x 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 Leverage Shares i.e., Leverage Shares and Amundi Treasury go up and down completely randomly.
Pair Corralation between Leverage Shares and Amundi Treasury
Assuming the 90 days trading horizon Leverage Shares 2x is expected to generate 4.83 times more return on investment than Amundi Treasury. However, Leverage Shares is 4.83 times more volatile than Amundi Treasury Bond. It trades about 0.1 of its potential returns per unit of risk. Amundi Treasury Bond is currently generating about -0.09 per unit of risk. If you would invest 5,973 in Leverage Shares 2x on August 24, 2024 and sell it today you would earn a total of 437.00 from holding Leverage Shares 2x or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leverage Shares 2x vs. Amundi Treasury Bond
Performance |
| Timeline |
| Leverage Shares 2x |
| Amundi Treasury Bond |
Leverage Shares and Amundi Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leverage Shares and Amundi Treasury
The main advantage of trading using opposite Leverage Shares and Amundi Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leverage Shares 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.| Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. WisdomTree SP 500 | Leverage Shares vs. WisdomTree Silver 3x | Leverage Shares vs. Lyxor 10Y Inflation |
| Amundi Treasury vs. Amundi EUR High | Amundi Treasury vs. Amundi Index Solutions | Amundi Treasury vs. Amundi MSCI Pacific | Amundi Treasury vs. Amundi MSCI Europe |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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