Correlation Between Amundi Label and Amundi Label

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

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

Diversification Opportunities for Amundi Label and Amundi Label

0.92

Correlation Coefficient

Amundi Label  Amundi Label

Almost no diversification

The 3 months correlation between Amundi and Amundi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Label Equilibre and Amundi Label Actions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Label Actions 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 Equilibre are associated (or correlated) with Amundi Label. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Label Actions has no effect on the direction of Amundi Label i.e., Amundi Label and Amundi Label go up and down completely randomly.

Pair Corralation between Amundi Label and Amundi Label

Assuming the 90 days trading horizon Amundi Label is expected to generate 1.73 times less return on investment than Amundi Label. But when comparing it to its historical volatility, Amundi Label Equilibre is 1.99 times less risky than Amundi Label. It trades about 0.06 of its potential returns per unit of risk. Amundi Label Actions is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  25,182  in Amundi Label Actions on October 4, 2024 and sell it today you would earn a total of  4,793  from holding Amundi Label Actions or generate 19.03% 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 Equilibre  vs.  Amundi Label Actions

Amundi Label Equilibre

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amundi Label Equilibre has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Amundi Label is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

Pair Trading with Amundi Label and Amundi Label

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

The idea behind Amundi Label Equilibre and Amundi Label Actions 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.