Correlation Between Amundi EUR and LEVERAGE SHARES
Can any of the company-specific risk be diversified away by investing in both Amundi EUR and LEVERAGE SHARES 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 LEVERAGE SHARES 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 LEVERAGE SHARES PUBLIC, you can compare the effects of market volatilities on Amundi EUR and LEVERAGE SHARES 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 LEVERAGE SHARES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi EUR and LEVERAGE SHARES.
Diversification Opportunities for Amundi EUR and LEVERAGE SHARES
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amundi and LEVERAGE is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Amundi EUR High and LEVERAGE SHARES PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEVERAGE SHARES PUBLIC 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 LEVERAGE SHARES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEVERAGE SHARES PUBLIC has no effect on the direction of Amundi EUR i.e., Amundi EUR and LEVERAGE SHARES go up and down completely randomly.
Pair Corralation between Amundi EUR and LEVERAGE SHARES
Assuming the 90 days trading horizon Amundi EUR High is expected to generate 0.22 times more return on investment than LEVERAGE SHARES. However, Amundi EUR High is 4.52 times less risky than LEVERAGE SHARES. It trades about 0.09 of its potential returns per unit of risk. LEVERAGE SHARES PUBLIC is currently generating about -0.04 per unit of risk. If you would invest 10,410 in Amundi EUR High on October 24, 2024 and sell it today you would earn a total of 99.00 from holding Amundi EUR High or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.08% |
| Values | Daily Returns |
Amundi EUR High vs. LEVERAGE SHARES PUBLIC
Performance |
| Timeline |
| Amundi EUR High |
| LEVERAGE SHARES PUBLIC |
Amundi EUR and LEVERAGE SHARES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi EUR and LEVERAGE SHARES
The main advantage of trading using opposite Amundi EUR and LEVERAGE SHARES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi EUR position performs unexpectedly, LEVERAGE SHARES 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 LEVERAGE SHARES will offset losses from the drop in LEVERAGE SHARES's long position.| Amundi EUR vs. Amundi Index Solutions | Amundi EUR vs. Amundi MSCI Pacific | Amundi EUR vs. Amundi MSCI Europe | Amundi EUR vs. Amundi Index Solutions |
| LEVERAGE SHARES vs. LEVERAGE SHARES PUBLIC LIMITED CO. 1X GOOG | LEVERAGE SHARES vs. LEVERAGE SHARES PUBLIC | LEVERAGE SHARES vs. LEVERAGE SHARES PUBLIC | LEVERAGE SHARES vs. LEVERAGE SHARES PUBLIC |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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