Correlation Between Amundi Label and FF Germany

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

Diversification Opportunities for Amundi Label and FF Germany

0.0

Correlation Coefficient

Amundi Label  FF Germany

Pay attention - limited upside

The 3 months correlation between Amundi and FJ2L is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Label Actions and FF Germany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FF Germany 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 FF Germany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FF Germany has no effect on the direction of Amundi Label i.e., Amundi Label and FF Germany go up and down completely randomly.

Pair Corralation between Amundi Label and FF Germany

If you would invest  6,760  in FF Germany on October 8, 2024 and sell it today you would earn a total of  558.00  from holding FF Germany or generate 8.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Amundi Label Actions  vs.  FF Germany

Amundi Label Actions

Risk-Adjusted Performance

0 of 100

Very Weak

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

FF Germany

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FF Germany are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather conflicting technical and fundamental indicators, FF Germany may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Amundi Label and FF Germany

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

The idea behind Amundi Label Actions and FF Germany 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.