Correlation Between Amundi Obligataire and RYOHIN UNSPADR/1

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

By analyzing existing cross correlation between Amundi Obligataire Diversifi and RYOHIN UNSPADR1, you can compare the effects of market volatilities on Amundi Obligataire and RYOHIN UNSPADR/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 Obligataire with a short position of RYOHIN UNSPADR/1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Obligataire and RYOHIN UNSPADR/1.

Diversification Opportunities for Amundi Obligataire and RYOHIN UNSPADR/1

0.38

Correlation Coefficient

Amundi Obligataire  RYOHIN UNSPADR/1

Weak diversification

The 3 months correlation between Amundi and RYOHIN is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Obligataire Diversifi and RYOHIN UNSPADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RYOHIN UNSPADR/1 and Amundi Obligataire 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 Obligataire Diversifi are associated (or correlated) with RYOHIN UNSPADR/1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RYOHIN UNSPADR/1 has no effect on the direction of Amundi Obligataire i.e., Amundi Obligataire and RYOHIN UNSPADR/1 go up and down completely randomly.

Pair Corralation between Amundi Obligataire and RYOHIN UNSPADR/1

Assuming the 90 days trading horizon Amundi Obligataire Diversifi is expected to under-perform the RYOHIN UNSPADR/1. But the fund apears to be less risky and, when comparing its historical volatility, Amundi Obligataire Diversifi is 10.81 times less risky than RYOHIN UNSPADR/1. The fund trades about -0.01 of its potential returns per unit of risk. The RYOHIN UNSPADR1 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,180  in RYOHIN UNSPADR1 on December 25, 2024 and sell it today you would earn a total of  180.00  from holding RYOHIN UNSPADR1 or generate 8.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Amundi Obligataire Diversifi  vs.  RYOHIN UNSPADR1

Amundi Obligataire

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amundi Obligataire Diversifi has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Amundi Obligataire is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

RYOHIN UNSPADR/1

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in RYOHIN UNSPADR1 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking signals, RYOHIN UNSPADR/1 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Amundi Obligataire and RYOHIN UNSPADR/1

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

The idea behind Amundi Obligataire Diversifi and RYOHIN UNSPADR1 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.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.