Correlation Between SBF 120 and Amundi Index
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By analyzing existing cross correlation between SBF 120 and Amundi Index Solutions, you can compare the effects of market volatilities on SBF 120 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 SBF 120 with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Amundi Index.
Diversification Opportunities for SBF 120 and Amundi Index
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBF and Amundi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 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 SBF 120 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 SBF 120 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 SBF 120 i.e., SBF 120 and Amundi Index go up and down completely randomly.
Pair Corralation between SBF 120 and Amundi Index
Assuming the 90 days trading horizon SBF 120 is expected to generate 3.11 times less return on investment than Amundi Index. But when comparing it to its historical volatility, SBF 120 is 1.04 times less risky than Amundi Index. It trades about 0.02 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 77,338 in Amundi Index Solutions on August 24, 2024 and sell it today you would earn a total of 21,805 from holding Amundi Index Solutions or generate 28.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Amundi Index Solutions
Performance |
| Timeline |
SBF 120 and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Amundi Index Solutions
Pair trading matchups for Amundi Index
Pair Trading with SBF 120 and Amundi Index
The main advantage of trading using opposite SBF 120 and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 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.| SBF 120 vs. Mauna Kea Technologies | SBF 120 vs. Axway Software | SBF 120 vs. Soditech SA | SBF 120 vs. Guandao Puer Investment |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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