Correlation Between ETHetc ETC and Amundi Index
Can any of the company-specific risk be diversified away by investing in both ETHetc ETC and Amundi Index 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 ETHetc ETC and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETHetc ETC and Amundi Index Solutions, you can compare the effects of market volatilities on ETHetc ETC and Amundi Index 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 ETHetc ETC with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETHetc ETC and Amundi Index.
Diversification Opportunities for ETHetc ETC and Amundi Index
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ETHetc and Amundi is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ETHetc ETC and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and ETHetc ETC 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 ETHetc ETC are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of ETHetc ETC i.e., ETHetc ETC and Amundi Index go up and down completely randomly.
Pair Corralation between ETHetc ETC and Amundi Index
If you would invest 19,078 in Amundi Index Solutions on September 19, 2024 and sell it today you would earn a total of 1,539 from holding Amundi Index Solutions or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.34% |
| Values | Daily Returns |
ETHetc ETC vs. Amundi Index Solutions
Performance |
| Timeline |
| ETHetc ETC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Amundi Index Solutions |
ETHetc ETC and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETHetc ETC and Amundi Index
The main advantage of trading using opposite ETHetc ETC and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETHetc ETC position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| ETHetc ETC vs. Amundi Index Solutions | ETHetc ETC vs. Multi Units Luxembourg | ETHetc ETC vs. iShares Digital Entertainment | ETHetc ETC vs. Amundi Index Solutions |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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