Correlation Between Amundi EUR and Amundi Treasury
Can any of the company-specific risk be diversified away by investing in both Amundi EUR and Amundi Treasury 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 Amundi Treasury 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 Amundi Treasury Bond, you can compare the effects of market volatilities on Amundi EUR and Amundi Treasury 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 Amundi Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi EUR and Amundi Treasury.
Diversification Opportunities for Amundi EUR and Amundi Treasury
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and Amundi is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Amundi EUR High and Amundi Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Treasury Bond 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 Amundi Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Treasury Bond has no effect on the direction of Amundi EUR i.e., Amundi EUR and Amundi Treasury go up and down completely randomly.
Pair Corralation between Amundi EUR and Amundi Treasury
Assuming the 90 days trading horizon Amundi EUR High is expected to generate 0.15 times more return on investment than Amundi Treasury. However, Amundi EUR High is 6.6 times less risky than Amundi Treasury. It trades about 0.14 of its potential returns per unit of risk. Amundi Treasury Bond is currently generating about -0.09 per unit of risk. If you would invest 10,627 in Amundi EUR High on August 24, 2024 and sell it today you would earn a total of 42.00 from holding Amundi EUR High or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi EUR High vs. Amundi Treasury Bond
Performance |
| Timeline |
| Amundi EUR High |
| Amundi Treasury Bond |
Amundi EUR and Amundi Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi EUR and Amundi Treasury
The main advantage of trading using opposite Amundi EUR and Amundi Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi EUR position performs unexpectedly, Amundi Treasury 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 Treasury will offset losses from the drop in Amundi Treasury'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 |
| Amundi Treasury vs. Amundi EUR High | Amundi Treasury vs. Amundi Index Solutions | Amundi Treasury vs. Amundi MSCI Pacific | Amundi Treasury vs. Amundi MSCI Europe |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |