Correlation Between Surgical Science and Amundi Treasury
Can any of the company-specific risk be diversified away by investing in both Surgical Science 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 Surgical Science and Amundi Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surgical Science Sweden and Amundi Treasury Bond, you can compare the effects of market volatilities on Surgical Science 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 Surgical Science with a short position of Amundi Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Amundi Treasury.
Diversification Opportunities for Surgical Science and Amundi Treasury
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Surgical and Amundi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden 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 Surgical Science 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 Surgical Science Sweden 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 Surgical Science i.e., Surgical Science and Amundi Treasury go up and down completely randomly.
Pair Corralation between Surgical Science and Amundi Treasury
Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 3.72 times more return on investment than Amundi Treasury. However, Surgical Science is 3.72 times more volatile than Amundi Treasury Bond. It trades about 0.15 of its potential returns per unit of risk. Amundi Treasury Bond is currently generating about -0.11 per unit of risk. If you would invest 11,680 in Surgical Science Sweden on September 6, 2024 and sell it today you would earn a total of 3,300 from holding Surgical Science Sweden or generate 28.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Surgical Science Sweden vs. Amundi Treasury Bond
Performance |
Timeline |
Surgical Science Sweden |
Amundi Treasury Bond |
Surgical Science and Amundi Treasury Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Surgical Science and Amundi Treasury
The main advantage of trading using opposite Surgical Science and Amundi Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science 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.Surgical Science vs. Roebuck Food Group | Surgical Science vs. Check Point Software | Surgical Science vs. Concurrent Technologies Plc | Surgical Science vs. Bell Food Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |