Correlation Between Swiss Leader and Amundi EUR
Can any of the company-specific risk be diversified away by investing in both Swiss Leader 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 Swiss Leader and Amundi EUR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Leader Price and Amundi EUR High, you can compare the effects of market volatilities on Swiss Leader 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 Swiss Leader with a short position of Amundi EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and Amundi EUR.
Diversification Opportunities for Swiss Leader and Amundi EUR
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swiss and Amundi is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price 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 Swiss Leader 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 Swiss Leader Price 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 Swiss Leader i.e., Swiss Leader and Amundi EUR go up and down completely randomly.
Pair Corralation between Swiss Leader and Amundi EUR
Assuming the 90 days trading horizon Swiss Leader Price is expected to generate 2.03 times more return on investment than Amundi EUR. However, Swiss Leader is 2.03 times more volatile than Amundi EUR High. It trades about 0.59 of its potential returns per unit of risk. Amundi EUR High is currently generating about -0.06 per unit of risk. If you would invest 191,700 in Swiss Leader Price on October 28, 2024 and sell it today you would earn a total of 12,074 from holding Swiss Leader Price or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.37% |
| Values | Daily Returns |
Swiss Leader Price vs. Amundi EUR High
Performance |
| Timeline |
Swiss Leader and Amundi EUR Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
Amundi EUR High
Pair trading matchups for Amundi EUR
Pair Trading with Swiss Leader and Amundi EUR
The main advantage of trading using opposite Swiss Leader and Amundi EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader 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.| Swiss Leader vs. mobilezone ag | Swiss Leader vs. BB Biotech AG | Swiss Leader vs. Schweiter Technologies AG | Swiss Leader vs. Basellandschaftliche Kantonalbank |
| Amundi EUR vs. Amundi Index Solutions | Amundi EUR vs. Amundi Index Solutions | Amundi EUR vs. Amundi Index Solutions | Amundi EUR 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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