Correlation Between Banque Cantonale and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Amundi Index 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 Banque Cantonale and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale du and Amundi Index Solutions, you can compare the effects of market volatilities on Banque Cantonale and Amundi Index 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 Banque Cantonale with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Amundi Index.
Diversification Opportunities for Banque Cantonale and Amundi Index
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Banque and Amundi is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and Banque Cantonale 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 Banque Cantonale du are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Amundi Index go up and down completely randomly.
Pair Corralation between Banque Cantonale and Amundi Index
Assuming the 90 days trading horizon Banque Cantonale du is expected to under-perform the Amundi Index. But the stock apears to be less risky and, when comparing its historical volatility, Banque Cantonale du is 1.85 times less risky than Amundi Index. The stock trades about -0.19 of its potential returns per unit of risk. The Amundi Index Solutions is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 11,308 in Amundi Index Solutions on September 2, 2024 and sell it today you would earn a total of 526.00 from holding Amundi Index Solutions or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale du vs. Amundi Index Solutions
Performance |
| Timeline |
| Banque Cantonale |
| Amundi Index Solutions |
Banque Cantonale and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Amundi Index
The main advantage of trading using opposite Banque Cantonale and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| Banque Cantonale vs. Zurich Insurance Group | Banque Cantonale vs. VP Bank AG | Banque Cantonale vs. Metall Zug AG | Banque Cantonale vs. Luzerner Kantonalbank AG |
| Amundi Index vs. iShares Core SP | Amundi Index vs. iShares Core MSCI | Amundi Index vs. Lyxor UCITS Stoxx |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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