Correlation Between Amundi Label and Pacteo Actions

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

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

Diversification Opportunities for Amundi Label and Pacteo Actions

0.99

Correlation Coefficient

Amundi Label  Pacteo Actions

No risk reduction

The 3 months correlation between Amundi and Pacteo is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Label Actions and Pacteo Actions Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacteo Actions Europe and Amundi Label 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 Label Actions are associated (or correlated) with Pacteo Actions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacteo Actions Europe has no effect on the direction of Amundi Label i.e., Amundi Label and Pacteo Actions go up and down completely randomly.

Pair Corralation between Amundi Label and Pacteo Actions

Assuming the 90 days trading horizon Amundi Label Actions is expected to generate 0.98 times more return on investment than Pacteo Actions. However, Amundi Label Actions is 1.02 times less risky than Pacteo Actions. It trades about 0.14 of its potential returns per unit of risk. Pacteo Actions Europe is currently generating about 0.09 per unit of risk. If you would invest  29,435  in Amundi Label Actions on December 10, 2024 and sell it today you would earn a total of  4,167  from holding Amundi Label Actions or generate 14.16% return on investment over 90 days.

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

Amundi Label Actions  vs.  Pacteo Actions Europe

Amundi Label Actions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi Label Actions are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Amundi Label may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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.

Pair Trading with Amundi Label and Pacteo Actions

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

The idea behind Amundi Label Actions and Pacteo Actions Europe 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.