Correlation Between Chia and Amundi EUR
Can any of the company-specific risk be diversified away by investing in both Chia 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 Chia and Amundi EUR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia and Amundi EUR High, you can compare the effects of market volatilities on Chia 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 Chia with a short position of Amundi EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia and Amundi EUR.
Diversification Opportunities for Chia and Amundi EUR
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chia and Amundi is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Chia 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 Chia 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 Chia 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 Chia i.e., Chia and Amundi EUR go up and down completely randomly.
Pair Corralation between Chia and Amundi EUR
Assuming the 90 days trading horizon Chia is expected to under-perform the Amundi EUR. In addition to that, Chia is 24.89 times more volatile than Amundi EUR High. It trades about -0.08 of its total potential returns per unit of risk. Amundi EUR High is currently generating about -0.06 per unit of volatility. If you would invest 10,520 in Amundi EUR High on October 28, 2024 and sell it today you would lose (16.00) from holding Amundi EUR High or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
Chia vs. Amundi EUR High
Performance |
| Timeline |
| Chia |
| Amundi EUR High |
Chia and Amundi EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia and Amundi EUR
The main advantage of trading using opposite Chia and Amundi EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia 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.The idea behind Chia and Amundi EUR High pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amundi EUR vs. Amundi Index Solutions | Amundi EUR vs. Amundi Index Solutions | Amundi EUR vs. Amundi Index Solutions | Amundi EUR vs. Amundi Index Solutions |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |