Correlation Between Polar Capital and Amundi Physical
Can any of the company-specific risk be diversified away by investing in both Polar Capital and Amundi Physical 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 Polar Capital and Amundi Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Capital Technology and Amundi Physical Gold, you can compare the effects of market volatilities on Polar Capital and Amundi Physical 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 Polar Capital with a short position of Amundi Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Capital and Amundi Physical.
Diversification Opportunities for Polar Capital and Amundi Physical
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Polar and Amundi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Technology and Amundi Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Physical Gold and Polar Capital 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 Polar Capital Technology are associated (or correlated) with Amundi Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Physical Gold has no effect on the direction of Polar Capital i.e., Polar Capital and Amundi Physical go up and down completely randomly.
Pair Corralation between Polar Capital and Amundi Physical
Assuming the 90 days trading horizon Polar Capital Technology is expected to generate 1.35 times more return on investment than Amundi Physical. However, Polar Capital is 1.35 times more volatile than Amundi Physical Gold. It trades about 0.24 of its potential returns per unit of risk. Amundi Physical Gold is currently generating about -0.04 per unit of risk. If you would invest 31,050 in Polar Capital Technology on September 2, 2024 and sell it today you would earn a total of 2,550 from holding Polar Capital Technology or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polar Capital Technology vs. Amundi Physical Gold
Performance |
| Timeline |
| Polar Capital Technology |
| Amundi Physical Gold |
Polar Capital and Amundi Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Capital and Amundi Physical
The main advantage of trading using opposite Polar Capital and Amundi Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Capital position performs unexpectedly, Amundi Physical 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 Physical will offset losses from the drop in Amundi Physical's long position.| Polar Capital vs. Toyota Motor Corp | Polar Capital vs. SoftBank Group Corp | Polar Capital vs. OTP Bank Nyrt | Polar Capital vs. Las Vegas Sands |
| Amundi Physical vs. GreenX Metals | Amundi Physical vs. European Metals Holdings | Amundi Physical vs. Allianz Technology Trust | Amundi Physical vs. Check Point Software |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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