Correlation Between Invesco Technology and Amundi FTSE
Can any of the company-specific risk be diversified away by investing in both Invesco Technology and Amundi FTSE 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 FTSE 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 FTSE EPRANAREIT, you can compare the effects of market volatilities on Invesco Technology and Amundi FTSE 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 FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Technology and Amundi FTSE.
Diversification Opportunities for Invesco Technology and Amundi FTSE
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and Amundi is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Technology SP and Amundi FTSE EPRANAREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi FTSE EPRANAREIT 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 FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi FTSE EPRANAREIT has no effect on the direction of Invesco Technology i.e., Invesco Technology and Amundi FTSE go up and down completely randomly.
Pair Corralation between Invesco Technology and Amundi FTSE
Assuming the 90 days trading horizon Invesco Technology SP is expected to generate 0.89 times more return on investment than Amundi FTSE. However, Invesco Technology SP is 1.12 times less risky than Amundi FTSE. It trades about 0.08 of its potential returns per unit of risk. Amundi FTSE EPRANAREIT is currently generating about -0.17 per unit of risk. If you would invest 68,530 in Invesco Technology SP on September 13, 2024 and sell it today you would earn a total of 1,030 from holding Invesco Technology SP or generate 1.5% 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 FTSE EPRANAREIT
Performance |
| Timeline |
| Invesco Technology |
| Amundi FTSE EPRANAREIT |
Invesco Technology and Amundi FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Technology and Amundi FTSE
The main advantage of trading using opposite Invesco Technology and Amundi FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Technology position performs unexpectedly, Amundi FTSE 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 FTSE will offset losses from the drop in Amundi FTSE's long position.| Invesco Technology vs. Baloise Holding AG | Invesco Technology vs. 21Shares Polkadot ETP | Invesco Technology vs. UBS ETF MSCI | Invesco Technology vs. BB Biotech AG |
| Amundi FTSE vs. Baloise Holding AG | Amundi FTSE vs. 21Shares Polkadot ETP | Amundi FTSE vs. UBS ETF MSCI | Amundi FTSE vs. BB Biotech AG |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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