Correlation Between Amundi PEA and Invesco Markets
Can any of the company-specific risk be diversified away by investing in both Amundi PEA and Invesco Markets 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 Invesco Markets 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 Invesco Markets III, you can compare the effects of market volatilities on Amundi PEA and Invesco Markets 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 Invesco Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi PEA and Invesco Markets.
Diversification Opportunities for Amundi PEA and Invesco Markets
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and Invesco is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Amundi PEA Immobilier and Invesco Markets III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Markets III 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 Invesco Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Markets III has no effect on the direction of Amundi PEA i.e., Amundi PEA and Invesco Markets go up and down completely randomly.
Pair Corralation between Amundi PEA and Invesco Markets
Assuming the 90 days trading horizon Amundi PEA Immobilier is expected to under-perform the Invesco Markets. In addition to that, Amundi PEA is 5.28 times more volatile than Invesco Markets III. It trades about -0.04 of its total potential returns per unit of risk. Invesco Markets III is currently generating about 0.06 per unit of volatility. If you would invest 10,447 in Invesco Markets III on November 2, 2024 and sell it today you would earn a total of 137.00 from holding Invesco Markets III or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.06% |
| Values | Daily Returns |
Amundi PEA Immobilier vs. Invesco Markets III
Performance |
| Timeline |
| Amundi PEA Immobilier |
| Invesco Markets III |
Amundi PEA and Invesco Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi PEA and Invesco Markets
The main advantage of trading using opposite Amundi PEA and Invesco Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi PEA position performs unexpectedly, Invesco Markets 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 Invesco Markets will offset losses from the drop in Invesco Markets' 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 |
| Invesco Markets vs. Lyxor UCITS NASDAQ 100 | Invesco Markets vs. Lyxor UCITS Stoxx | Invesco Markets vs. Lyxor UCITS MSCI | Invesco Markets vs. Multi Units Luxembourg |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |