Correlation Between Amundi Actions and Lyxor 1

Can any of the company-specific risk be diversified away by investing in both Amundi Actions and Lyxor 1 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 Actions and Lyxor 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amundi Actions Internationales and Lyxor 1 , you can compare the effects of market volatilities on Amundi Actions and Lyxor 1 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 Actions with a short position of Lyxor 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Actions and Lyxor 1.

Diversification Opportunities for Amundi Actions and Lyxor 1

0.68

Correlation Coefficient

Amundi Actions  Lyxor 1

Poor diversification

The 3 months correlation between Amundi and Lyxor is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Actions Internationales and Lyxor 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 and Amundi 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 Amundi Actions Internationales are associated (or correlated) with Lyxor 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 has no effect on the direction of Amundi Actions i.e., Amundi Actions and Lyxor 1 go up and down completely randomly.

Pair Corralation between Amundi Actions and Lyxor 1

Assuming the 90 days trading horizon Amundi Actions Internationales is expected to generate 0.69 times more return on investment than Lyxor 1. However, Amundi Actions Internationales is 1.46 times less risky than Lyxor 1. It trades about 0.1 of its potential returns per unit of risk. Lyxor 1 is currently generating about 0.01 per unit of risk. If you would invest  2,406  in Amundi Actions Internationales on October 4, 2024 and sell it today you would earn a total of  868.00  from holding Amundi Actions Internationales or generate 36.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Amundi Actions Internationales  vs.  Lyxor 1

Amundi Actions Inter

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi Actions Internationales are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat fragile basic indicators, Amundi Actions may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Lyxor 1

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lyxor 1 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Lyxor 1 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Amundi Actions and Lyxor 1

The main advantage of trading using opposite Amundi Actions and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Actions position performs unexpectedly, Lyxor 1 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 Lyxor 1 will offset losses from the drop in Lyxor 1's long position.

The idea behind Amundi Actions Internationales and Lyxor 1 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.