Correlation Between Amundi EUR and VinaCapital Vietnam
Can any of the company-specific risk be diversified away by investing in both Amundi EUR and VinaCapital Vietnam 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 VinaCapital Vietnam 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 VinaCapital Vietnam Opportunity, you can compare the effects of market volatilities on Amundi EUR and VinaCapital Vietnam 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 VinaCapital Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi EUR and VinaCapital Vietnam.
Diversification Opportunities for Amundi EUR and VinaCapital Vietnam
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and VinaCapital is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Amundi EUR High and VinaCapital Vietnam Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinaCapital Vietnam 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 VinaCapital Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VinaCapital Vietnam has no effect on the direction of Amundi EUR i.e., Amundi EUR and VinaCapital Vietnam go up and down completely randomly.
Pair Corralation between Amundi EUR and VinaCapital Vietnam
Assuming the 90 days trading horizon Amundi EUR High is expected to generate 0.14 times more return on investment than VinaCapital Vietnam. However, Amundi EUR High is 7.2 times less risky than VinaCapital Vietnam. It trades about 0.07 of its potential returns per unit of risk. VinaCapital Vietnam Opportunity is currently generating about -0.06 per unit of risk. If you would invest 10,658 in Amundi EUR High on August 29, 2024 and sell it today you would earn a total of 21.00 from holding Amundi EUR High or generate 0.2% 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. VinaCapital Vietnam Opportunit
Performance |
| Timeline |
| Amundi EUR High |
| VinaCapital Vietnam |
Amundi EUR and VinaCapital Vietnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi EUR and VinaCapital Vietnam
The main advantage of trading using opposite Amundi EUR and VinaCapital Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi EUR position performs unexpectedly, VinaCapital Vietnam 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 VinaCapital Vietnam will offset losses from the drop in VinaCapital Vietnam'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 |
| VinaCapital Vietnam vs. Edinburgh Worldwide Investment | VinaCapital Vietnam vs. BlackRock Latin American | VinaCapital Vietnam vs. iShares MSCI Japan | VinaCapital Vietnam 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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