Correlation Between Amundi EUR and Saturna Al
Can any of the company-specific risk be diversified away by investing in both Amundi EUR and Saturna Al 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 Amundi EUR and Saturna Al into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi EUR High and Saturna Al Kawthar Global, you can compare the effects of market volatilities on Amundi EUR and Saturna Al 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 Amundi EUR with a short position of Saturna Al. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi EUR and Saturna Al.
Diversification Opportunities for Amundi EUR and Saturna Al
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amundi and Saturna is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Amundi EUR High and Saturna Al Kawthar Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saturna Al Kawthar and Amundi EUR 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 Amundi EUR High are associated (or correlated) with Saturna Al. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saturna Al Kawthar has no effect on the direction of Amundi EUR i.e., Amundi EUR and Saturna Al go up and down completely randomly.
Pair Corralation between Amundi EUR and Saturna Al
Assuming the 90 days trading horizon Amundi EUR is expected to generate 1.61 times less return on investment than Saturna Al. But when comparing it to its historical volatility, Amundi EUR High is 3.89 times less risky than Saturna Al. It trades about 0.17 of its potential returns per unit of risk. Saturna Al Kawthar Global is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 776.00 in Saturna Al Kawthar Global on September 12, 2024 and sell it today you would earn a total of 163.00 from holding Saturna Al Kawthar Global or generate 21.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi EUR High vs. Saturna Al Kawthar Global
Performance |
| Timeline |
| Amundi EUR High |
| Saturna Al Kawthar |
Amundi EUR and Saturna Al Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi EUR and Saturna Al
The main advantage of trading using opposite Amundi EUR and Saturna Al positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi EUR position performs unexpectedly, Saturna Al 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 Saturna Al will offset losses from the drop in Saturna Al's long position.| Amundi EUR vs. VanEck Crypto Blockchain | Amundi EUR vs. Amundi Treasury Bond | Amundi EUR vs. Coor Service Management | Amundi EUR vs. Franklin FTSE Brazil |
| Saturna Al vs. Saturna Al Kawthar Global | Saturna Al vs. iShares MSCI Japan | Saturna Al vs. Amundi EUR High | Saturna Al vs. iShares JP Morgan |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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