Correlation Between Amundi PEA and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Amundi PEA 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 Amundi PEA and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi PEA Immobilier and Amundi ETF PEA, you can compare the effects of market volatilities on Amundi PEA 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 Amundi PEA with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi PEA and Amundi ETF.
Diversification Opportunities for Amundi PEA and Amundi ETF
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and Amundi is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amundi PEA Immobilier 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 Amundi PEA 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 Amundi PEA Immobilier 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 Amundi PEA i.e., Amundi PEA and Amundi ETF go up and down completely randomly.
Pair Corralation between Amundi PEA and Amundi ETF
Assuming the 90 days trading horizon Amundi PEA is expected to generate 1.92 times less return on investment than Amundi ETF. But when comparing it to its historical volatility, Amundi PEA Immobilier is 1.1 times less risky than Amundi ETF. It trades about 0.06 of its potential returns per unit of risk. Amundi ETF PEA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,785 in Amundi ETF PEA on August 27, 2024 and sell it today you would earn a total of 1,115 from holding Amundi ETF PEA or generate 23.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi PEA Immobilier vs. Amundi ETF PEA
Performance |
| Timeline |
| Amundi PEA Immobilier |
| Amundi ETF PEA |
Amundi PEA and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi PEA and Amundi ETF
The main advantage of trading using opposite Amundi PEA and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi PEA 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.| Amundi PEA vs. Amundi ETF PEA | Amundi PEA vs. Amundi Index Solutions | Amundi PEA vs. Amundi ETF PEA | Amundi PEA vs. Amundi ETF PEA |
| Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi ETF PEA |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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