Correlation Between Snap and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Snap and Amundi ETF 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 Snap and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Amundi ETF PEA, you can compare the effects of market volatilities on Snap and Amundi ETF 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 Snap with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Amundi ETF.
Diversification Opportunities for Snap and Amundi ETF
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and Amundi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Amundi ETF PEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF PEA and Snap 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 Snap Inc are associated (or correlated) with Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF PEA has no effect on the direction of Snap i.e., Snap and Amundi ETF go up and down completely randomly.
Pair Corralation between Snap and Amundi ETF
Given the investment horizon of 90 days Snap is expected to generate 1.01 times less return on investment than Amundi ETF. In addition to that, Snap is 3.39 times more volatile than Amundi ETF PEA. It trades about 0.03 of its total potential returns per unit of risk. Amundi ETF PEA is currently generating about 0.11 per unit of volatility. If you would invest 3,219 in Amundi ETF PEA on August 30, 2024 and sell it today you would earn a total of 2,631 from holding Amundi ETF PEA or generate 81.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.22% |
| Values | Daily Returns |
Snap Inc vs. Amundi ETF PEA
Performance |
| Timeline |
| Snap Inc |
| Amundi ETF PEA |
Snap and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Amundi ETF
The main advantage of trading using opposite Snap and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Amundi ETF 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 ETF will offset losses from the drop in Amundi ETF's long position.The idea behind Snap Inc and Amundi ETF PEA 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 ETF vs. Manitou BF SA | Amundi ETF vs. Ossiam Minimum Variance | Amundi ETF vs. Ekinops SA | Amundi ETF vs. Orapi SA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |