Correlation Between Invesco Technology and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Invesco Technology 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 Invesco Technology and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Technology SP and Amundi Index Solutions, you can compare the effects of market volatilities on Invesco Technology 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 Invesco Technology with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Technology and Amundi Index.
Diversification Opportunities for Invesco Technology and Amundi Index
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and Amundi is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Technology SP 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 Invesco Technology 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 Invesco Technology SP 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 Invesco Technology i.e., Invesco Technology and Amundi Index go up and down completely randomly.
Pair Corralation between Invesco Technology and Amundi Index
Assuming the 90 days trading horizon Invesco Technology SP is expected to generate 1.14 times more return on investment than Amundi Index. However, Invesco Technology is 1.14 times more volatile than Amundi Index Solutions. It trades about 0.13 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about -0.05 per unit of risk. If you would invest 65,790 in Invesco Technology SP on September 2, 2024 and sell it today you would earn a total of 1,790 from holding Invesco Technology SP or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Technology SP vs. Amundi Index Solutions
Performance |
| Timeline |
| Invesco Technology |
| Amundi Index Solutions |
Invesco Technology and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Technology and Amundi Index
The main advantage of trading using opposite Invesco Technology and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Technology 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.| Invesco Technology vs. iShares Core SP | Invesco Technology vs. iShares Core MSCI | Invesco Technology vs. Lyxor UCITS Stoxx |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |