Correlation Between Amundi Actions and Volkswagen

Can any of the company-specific risk be diversified away by investing in both Amundi Actions and Volkswagen 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 Volkswagen 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 Volkswagen AG, you can compare the effects of market volatilities on Amundi Actions and Volkswagen 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 Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Actions and Volkswagen.

Diversification Opportunities for Amundi Actions and Volkswagen

-0.81

Correlation Coefficient

Amundi Actions  Volkswagen

Pay attention - limited upside

The 3 months correlation between Amundi and Volkswagen is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Actions Internationales and Volkswagen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG 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 Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG has no effect on the direction of Amundi Actions i.e., Amundi Actions and Volkswagen go up and down completely randomly.

Pair Corralation between Amundi Actions and Volkswagen

Assuming the 90 days trading horizon Amundi Actions Internationales is expected to generate 0.52 times more return on investment than Volkswagen. However, Amundi Actions Internationales is 1.93 times less risky than Volkswagen. It trades about 0.08 of its potential returns per unit of risk. Volkswagen AG is currently generating about -0.09 per unit of risk. If you would invest  3,033  in Amundi Actions Internationales on September 30, 2024 and sell it today you would earn a total of  261.00  from holding Amundi Actions Internationales or generate 8.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	99.21%
Values	Daily Returns

Amundi Actions Internationales  vs.  Volkswagen AG

Amundi Actions Inter

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi Actions Internationales are ranked lower than 12 (%) 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 January 2025.

Volkswagen AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Volkswagen AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Amundi Actions and Volkswagen

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

The idea behind Amundi Actions Internationales and Volkswagen AG 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.