Correlation Between Invesco Markets and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Invesco Markets 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 Invesco Markets and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Markets III and Amundi Index Solutions, you can compare the effects of market volatilities on Invesco Markets 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 Invesco Markets with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Markets and Amundi Index.
Diversification Opportunities for Invesco Markets and Amundi Index
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Invesco and Amundi is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Markets III 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 Invesco Markets 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 Invesco Markets III 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 Invesco Markets i.e., Invesco Markets and Amundi Index go up and down completely randomly.
Pair Corralation between Invesco Markets and Amundi Index
Assuming the 90 days trading horizon Invesco Markets III is expected to generate 0.21 times more return on investment than Amundi Index. However, Invesco Markets III is 4.68 times less risky than Amundi Index. It trades about 0.25 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.05 per unit of risk. If you would invest 10,448 in Invesco Markets III on September 12, 2024 and sell it today you would earn a total of 98.00 from holding Invesco Markets III or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Invesco Markets III vs. Amundi Index Solutions
Performance |
| Timeline |
| Invesco Markets III |
| Amundi Index Solutions |
Invesco Markets and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Markets and Amundi Index
The main advantage of trading using opposite Invesco Markets and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Markets 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.| Invesco Markets vs. Lyxor UCITS Japan | Invesco Markets vs. Lyxor UCITS Japan | Invesco Markets vs. Lyxor UCITS Stoxx | Invesco Markets vs. Amundi CAC 40 |
| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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