Correlation Between Pacteo Actions and Amundi 3

Can any of the company-specific risk be diversified away by investing in both Pacteo Actions and Amundi 3 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 Pacteo Actions and Amundi 3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pacteo Actions Europe and Amundi 3 Mois, you can compare the effects of market volatilities on Pacteo Actions and Amundi 3 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 Pacteo Actions with a short position of Amundi 3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacteo Actions and Amundi 3.

Diversification Opportunities for Pacteo Actions and Amundi 3

0.83

Correlation Coefficient

Pacteo Actions  Amundi 3

Very poor diversification

The 3 months correlation between Pacteo and Amundi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Pacteo Actions Europe and Amundi 3 Mois in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi 3 Mois and Pacteo Actions 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 Pacteo Actions Europe are associated (or correlated) with Amundi 3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi 3 Mois has no effect on the direction of Pacteo Actions i.e., Pacteo Actions and Amundi 3 go up and down completely randomly.

Pair Corralation between Pacteo Actions and Amundi 3

Assuming the 90 days trading horizon Pacteo Actions Europe is expected to generate 117.61 times more return on investment than Amundi 3. However, Pacteo Actions is 117.61 times more volatile than Amundi 3 Mois. It trades about 0.13 of its potential returns per unit of risk. Amundi 3 Mois is currently generating about 1.38 per unit of risk. If you would invest  1,652  in Pacteo Actions Europe on December 27, 2024 and sell it today you would earn a total of  121.00  from holding Pacteo Actions Europe or generate 7.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Pacteo Actions Europe  vs.  Amundi 3 Mois

Pacteo Actions Europe

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pacteo Actions Europe are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Pacteo Actions may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Amundi 3 Mois

Risk-Adjusted Performance

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi 3 Mois are ranked lower than 96 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Amundi 3 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pacteo Actions and Amundi 3

The main advantage of trading using opposite Pacteo Actions and Amundi 3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacteo Actions position performs unexpectedly, Amundi 3 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 3 will offset losses from the drop in Amundi 3's long position.

The idea behind Pacteo Actions Europe and Amundi 3 Mois pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.