Correlation Between Nasdaq 100 and Amundi Climate
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Amundi Climate 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 Nasdaq 100 and Amundi Climate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Amundi Climate Transition, you can compare the effects of market volatilities on Nasdaq 100 and Amundi Climate 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 Nasdaq 100 with a short position of Amundi Climate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Amundi Climate.
Diversification Opportunities for Nasdaq 100 and Amundi Climate
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq and Amundi is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Amundi Climate Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Climate Transition and Nasdaq 100 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 Nasdaq 100 Index Fund are associated (or correlated) with Amundi Climate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Climate Transition has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Amundi Climate go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Amundi Climate
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 2.56 times more return on investment than Amundi Climate. However, Nasdaq 100 is 2.56 times more volatile than Amundi Climate Transition. It trades about 0.25 of its potential returns per unit of risk. Amundi Climate Transition is currently generating about 0.1 per unit of risk. If you would invest 4,998 in Nasdaq 100 Index Fund on September 1, 2024 and sell it today you would earn a total of 264.00 from holding Nasdaq 100 Index Fund or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Amundi Climate Transition
Performance |
| Timeline |
| Nasdaq 100 Index |
| Amundi Climate Transition |
Nasdaq 100 and Amundi Climate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Amundi Climate
The main advantage of trading using opposite Nasdaq 100 and Amundi Climate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Amundi Climate 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 Climate will offset losses from the drop in Amundi Climate's long position.| Nasdaq 100 vs. Alliancebernstein National Municipal | Nasdaq 100 vs. Nuveen Arizona Municipal | Nasdaq 100 vs. Bbh Intermediate Municipal | Nasdaq 100 vs. Old Westbury Municipal |
| Amundi Climate vs. Pioneer Fundamental Growth | Amundi Climate vs. Pioneer Global Equity | Amundi Climate vs. Pioneer Disciplined Value | Amundi Climate vs. Pioneer Disciplined Value |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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