Correlation Between Amundi Index and Amundi EUR
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Amundi EUR 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 Index and Amundi EUR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and Amundi EUR High, you can compare the effects of market volatilities on Amundi Index and Amundi EUR 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 Index with a short position of Amundi EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Amundi EUR.
Diversification Opportunities for Amundi Index and Amundi EUR
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and Amundi is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Amundi EUR High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi EUR High and Amundi Index 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 Index Solutions are associated (or correlated) with Amundi EUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi EUR High has no effect on the direction of Amundi Index i.e., Amundi Index and Amundi EUR go up and down completely randomly.
Pair Corralation between Amundi Index and Amundi EUR
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 5.0 times more return on investment than Amundi EUR. However, Amundi Index is 5.0 times more volatile than Amundi EUR High. It trades about 0.04 of its potential returns per unit of risk. Amundi EUR High is currently generating about 0.1 per unit of risk. If you would invest 26,748 in Amundi Index Solutions on August 26, 2024 and sell it today you would earn a total of 6,047 from holding Amundi Index Solutions or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Amundi Index Solutions vs. Amundi EUR High
Performance |
| Timeline |
| Amundi Index Solutions |
| Amundi EUR High |
Amundi Index and Amundi EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Amundi EUR
The main advantage of trading using opposite Amundi Index and Amundi EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Amundi EUR 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 EUR will offset losses from the drop in Amundi EUR's long position.| Amundi Index vs. Amundi EUR High | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Pacific | Amundi Index vs. Amundi MSCI Europe |
| Amundi EUR vs. Leverage Shares 2x | Amundi EUR vs. WisdomTree Silver 3x | Amundi EUR vs. Leverage Shares 2x | Amundi EUR vs. WisdomTree SP 500 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |