Correlation Between Amundi Treasury and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both Amundi Treasury and Franklin FTSE 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 Treasury and Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Treasury Bond and Franklin FTSE Brazil, you can compare the effects of market volatilities on Amundi Treasury and Franklin FTSE 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 Treasury with a short position of Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Treasury and Franklin FTSE.
Diversification Opportunities for Amundi Treasury and Franklin FTSE
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amundi and Franklin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Treasury Bond and Franklin FTSE Brazil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Brazil and Amundi Treasury 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 Treasury Bond are associated (or correlated) with Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Brazil has no effect on the direction of Amundi Treasury i.e., Amundi Treasury and Franklin FTSE go up and down completely randomly.
Pair Corralation between Amundi Treasury and Franklin FTSE
Assuming the 90 days trading horizon Amundi Treasury Bond is expected to under-perform the Franklin FTSE. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Treasury Bond is 2.37 times less risky than Franklin FTSE. The etf trades about 0.0 of its potential returns per unit of risk. The Franklin FTSE Brazil is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,102 in Franklin FTSE Brazil on November 29, 2024 and sell it today you would earn a total of 135.00 from holding Franklin FTSE Brazil or generate 6.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.6% |
Values | Daily Returns |
Amundi Treasury Bond vs. Franklin FTSE Brazil
Performance |
Timeline |
Amundi Treasury Bond |
Franklin FTSE Brazil |
Amundi Treasury and Franklin FTSE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amundi Treasury and Franklin FTSE
The main advantage of trading using opposite Amundi Treasury and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Treasury position performs unexpectedly, Franklin FTSE 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 Franklin FTSE will offset losses from the drop in Franklin FTSE's long position.Amundi Treasury vs. Amundi EUR High | Amundi Treasury vs. Amundi Index Solutions | Amundi Treasury vs. Amundi MSCI Pacific | Amundi Treasury vs. Amundi MSCI Europe |
Franklin FTSE vs. Franklin LibertyQ Global | Franklin FTSE vs. Franklin Libertyshares ICAV | Franklin FTSE vs. Franklin FTSE Asia | Franklin FTSE vs. Franklin LibertyQ AC |
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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