Correlation Between Amundi Treasury and Amundi EUR
Can any of the company-specific risk be diversified away by investing in both Amundi Treasury 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 Amundi Treasury and Amundi EUR 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 Amundi EUR High, you can compare the effects of market volatilities on Amundi Treasury 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 Amundi Treasury with a short position of Amundi EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Treasury and Amundi EUR.
Diversification Opportunities for Amundi Treasury and Amundi EUR
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and Amundi is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Treasury Bond 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 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 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 Amundi Treasury i.e., Amundi Treasury and Amundi EUR go up and down completely randomly.
Pair Corralation between Amundi Treasury and Amundi EUR
Assuming the 90 days trading horizon Amundi Treasury Bond is expected to under-perform the Amundi EUR. In addition to that, Amundi Treasury is 3.78 times more volatile than Amundi EUR High. It trades about -0.01 of its total potential returns per unit of risk. Amundi EUR High is currently generating about 0.11 per unit of volatility. If you would invest 9,532 in Amundi EUR High on August 27, 2024 and sell it today you would earn a total of 1,142 from holding Amundi EUR High or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Treasury Bond vs. Amundi EUR High
Performance |
| Timeline |
| Amundi Treasury Bond |
| Amundi EUR High |
Amundi Treasury and Amundi EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Treasury and Amundi EUR
The main advantage of trading using opposite Amundi Treasury and Amundi EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Treasury 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.| Amundi Treasury vs. Leverage Shares 3x | Amundi Treasury vs. WisdomTree SP 500 | Amundi Treasury vs. WisdomTree Silver 3x | Amundi Treasury vs. Leverage Shares 3x |
| Amundi EUR vs. Leverage Shares 2x | Amundi EUR vs. WisdomTree Silver 3x | Amundi EUR vs. Leverage Shares 2x | Amundi EUR vs. WisdomTree SP 500 |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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