Correlation Between Amundi EUR and Gabelli Merger
Can any of the company-specific risk be diversified away by investing in both Amundi EUR and Gabelli Merger 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 Gabelli Merger 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 Gabelli Merger Plus, you can compare the effects of market volatilities on Amundi EUR and Gabelli Merger 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 Gabelli Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi EUR and Gabelli Merger.
Diversification Opportunities for Amundi EUR and Gabelli Merger
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and Gabelli is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Amundi EUR High and Gabelli Merger Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Merger Plus 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 Gabelli Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Merger Plus has no effect on the direction of Amundi EUR i.e., Amundi EUR and Gabelli Merger go up and down completely randomly.
Pair Corralation between Amundi EUR and Gabelli Merger
Assuming the 90 days trading horizon Amundi EUR High is expected to generate 0.06 times more return on investment than Gabelli Merger. However, Amundi EUR High is 15.62 times less risky than Gabelli Merger. It trades about 0.16 of its potential returns per unit of risk. Gabelli Merger Plus is currently generating about -0.07 per unit of risk. If you would invest 10,505 in Amundi EUR High on August 31, 2024 and sell it today you would earn a total of 209.00 from holding Amundi EUR High or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi EUR High vs. Gabelli Merger Plus
Performance |
| Timeline |
| Amundi EUR High |
| Gabelli Merger Plus |
Amundi EUR and Gabelli Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi EUR and Gabelli Merger
The main advantage of trading using opposite Amundi EUR and Gabelli Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi EUR position performs unexpectedly, Gabelli Merger 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 Gabelli Merger will offset losses from the drop in Gabelli Merger's long position.| Amundi EUR vs. iShares Treasury Bond | Amundi EUR vs. VanEck Crypto Blockchain | Amundi EUR vs. Invesco Solar Energy | Amundi EUR vs. Neometals |
| Gabelli Merger vs. iShares MSCI Japan | Gabelli Merger vs. Amundi EUR High | Gabelli Merger vs. iShares JP Morgan | Gabelli Merger vs. Xtrackers MSCI |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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