Correlation Between Amundi Treasury and Invesco Solar
Can any of the company-specific risk be diversified away by investing in both Amundi Treasury and Invesco Solar 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 Invesco Solar 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 Invesco Solar Energy, you can compare the effects of market volatilities on Amundi Treasury and Invesco Solar 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 Invesco Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Treasury and Invesco Solar.
Diversification Opportunities for Amundi Treasury and Invesco Solar
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amundi and Invesco is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Treasury Bond and Invesco Solar Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Solar Energy 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 Invesco Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Solar Energy has no effect on the direction of Amundi Treasury i.e., Amundi Treasury and Invesco Solar go up and down completely randomly.
Pair Corralation between Amundi Treasury and Invesco Solar
Assuming the 90 days trading horizon Amundi Treasury Bond is expected to generate 0.24 times more return on investment than Invesco Solar. However, Amundi Treasury Bond is 4.16 times less risky than Invesco Solar. It trades about 0.02 of its potential returns per unit of risk. Invesco Solar Energy is currently generating about -0.01 per unit of risk. If you would invest 706.00 in Amundi Treasury Bond on September 2, 2024 and sell it today you would earn a total of 18.00 from holding Amundi Treasury Bond or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Treasury Bond vs. Invesco Solar Energy
Performance |
| Timeline |
| Amundi Treasury Bond |
| Invesco Solar Energy |
Amundi Treasury and Invesco Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Treasury and Invesco Solar
The main advantage of trading using opposite Amundi Treasury and Invesco Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Treasury position performs unexpectedly, Invesco Solar 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 Invesco Solar will offset losses from the drop in Invesco Solar's long position.| Amundi Treasury vs. WisdomTree Natural Gas | Amundi Treasury vs. WisdomTree Natural Gas | Amundi Treasury vs. Leverage Shares 2x | Amundi Treasury vs. WisdomTree Silver 3x |
| Invesco Solar vs. Leverage Shares 3x | Invesco Solar vs. WisdomTree Natural Gas | Invesco Solar vs. GraniteShares 3x Short | Invesco Solar vs. Leverage Shares 3x |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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