Correlation Between Procimmo Real and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Procimmo Real 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 Procimmo Real and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procimmo Real Estate and Amundi Index Solutions, you can compare the effects of market volatilities on Procimmo Real 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 Procimmo Real with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procimmo Real and Amundi Index.
Diversification Opportunities for Procimmo Real and Amundi Index
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procimmo and Amundi is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Procimmo Real Estate 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 Procimmo Real 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 Procimmo Real Estate 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 Procimmo Real i.e., Procimmo Real and Amundi Index go up and down completely randomly.
Pair Corralation between Procimmo Real and Amundi Index
Assuming the 90 days trading horizon Procimmo Real is expected to generate 4.31 times less return on investment than Amundi Index. In addition to that, Procimmo Real is 1.29 times more volatile than Amundi Index Solutions. It trades about 0.03 of its total potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.14 per unit of volatility. If you would invest 7,937 in Amundi Index Solutions on August 31, 2024 and sell it today you would earn a total of 3,861 from holding Amundi Index Solutions or generate 48.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.74% |
| Values | Daily Returns |
Procimmo Real Estate vs. Amundi Index Solutions
Performance |
| Timeline |
| Procimmo Real Estate |
| Amundi Index Solutions |
Procimmo Real and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procimmo Real and Amundi Index
The main advantage of trading using opposite Procimmo Real and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procimmo Real 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.The idea behind Procimmo Real Estate and Amundi Index Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Emerging |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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