Correlation Between Amundi EUR and Edinburgh Worldwide
Can any of the company-specific risk be diversified away by investing in both Amundi EUR and Edinburgh Worldwide 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 Edinburgh Worldwide 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 Edinburgh Worldwide Investment, you can compare the effects of market volatilities on Amundi EUR and Edinburgh Worldwide 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 Edinburgh Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi EUR and Edinburgh Worldwide.
Diversification Opportunities for Amundi EUR and Edinburgh Worldwide
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amundi and Edinburgh is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Amundi EUR High and Edinburgh Worldwide Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edinburgh Worldwide 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 Edinburgh Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edinburgh Worldwide has no effect on the direction of Amundi EUR i.e., Amundi EUR and Edinburgh Worldwide go up and down completely randomly.
Pair Corralation between Amundi EUR and Edinburgh Worldwide
Assuming the 90 days trading horizon Amundi EUR is expected to generate 57.28 times less return on investment than Edinburgh Worldwide. But when comparing it to its historical volatility, Amundi EUR High is 12.72 times less risky than Edinburgh Worldwide. It trades about 0.07 of its potential returns per unit of risk. Edinburgh Worldwide Investment is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 15,940 in Edinburgh Worldwide Investment on August 29, 2024 and sell it today you would earn a total of 1,860 from holding Edinburgh Worldwide Investment or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi EUR High vs. Edinburgh Worldwide Investment
Performance |
| Timeline |
| Amundi EUR High |
| Edinburgh Worldwide |
Amundi EUR and Edinburgh Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi EUR and Edinburgh Worldwide
The main advantage of trading using opposite Amundi EUR and Edinburgh Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi EUR position performs unexpectedly, Edinburgh Worldwide 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 Edinburgh Worldwide will offset losses from the drop in Edinburgh Worldwide's long position.| Amundi EUR vs. Leverage Shares 2x | Amundi EUR vs. WisdomTree Silver 3x | Amundi EUR vs. Leverage Shares 2x | Amundi EUR vs. WisdomTree SP 500 |
| Edinburgh Worldwide vs. BlackRock Latin American | Edinburgh Worldwide vs. VinaCapital Vietnam Opportunity | Edinburgh Worldwide vs. iShares MSCI Japan | Edinburgh Worldwide vs. Amundi EUR High |
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.
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