Correlation Between R Co and Amundi Obligataire

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

By analyzing existing cross correlation between R co Valor F and Amundi Obligataire Diversifi, you can compare the effects of market volatilities on R Co and Amundi Obligataire 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 R Co with a short position of Amundi Obligataire. Check out your portfolio center. Please also check ongoing floating volatility patterns of R Co and Amundi Obligataire.

Diversification Opportunities for R Co and Amundi Obligataire

0.57

Correlation Coefficient

R Co  Amundi Obligataire

Very weak diversification

The 3 months correlation between 0P00017SX2 and Amundi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding R co Valor F and Amundi Obligataire Diversifi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Obligataire and R Co 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 R co Valor F are associated (or correlated) with Amundi Obligataire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Obligataire has no effect on the direction of R Co i.e., R Co and Amundi Obligataire go up and down completely randomly.

Pair Corralation between R Co and Amundi Obligataire

Assuming the 90 days trading horizon R co Valor F is expected to under-perform the Amundi Obligataire. In addition to that, R Co is 4.08 times more volatile than Amundi Obligataire Diversifi. It trades about -0.02 of its total potential returns per unit of risk. Amundi Obligataire Diversifi is currently generating about 0.08 per unit of volatility. If you would invest  14,938  in Amundi Obligataire Diversifi on October 5, 2024 and sell it today you would earn a total of  100.00  from holding Amundi Obligataire Diversifi or generate 0.67% return on investment over 90 days.

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

R co Valor F  vs.  Amundi Obligataire Diversifi

R co Valor

Risk-Adjusted Performance

0 of 100

Very Weak

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

Amundi Obligataire

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with R Co and Amundi Obligataire

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

The idea behind R co Valor F and Amundi Obligataire Diversifi 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.