Correlation Between Coor Service and Amundi Treasury
Can any of the company-specific risk be diversified away by investing in both Coor Service and Amundi Treasury 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 Coor Service and Amundi Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and Amundi Treasury Bond, you can compare the effects of market volatilities on Coor Service and Amundi Treasury 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 Coor Service with a short position of Amundi Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Amundi Treasury.
Diversification Opportunities for Coor Service and Amundi Treasury
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coor and Amundi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and Amundi Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Treasury Bond and Coor Service 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 Coor Service Management are associated (or correlated) with Amundi Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Treasury Bond has no effect on the direction of Coor Service i.e., Coor Service and Amundi Treasury go up and down completely randomly.
Pair Corralation between Coor Service and Amundi Treasury
Assuming the 90 days trading horizon Coor Service Management is expected to under-perform the Amundi Treasury. In addition to that, Coor Service is 2.69 times more volatile than Amundi Treasury Bond. It trades about -0.18 of its total potential returns per unit of risk. Amundi Treasury Bond is currently generating about -0.11 per unit of volatility. If you would invest 767.00 in Amundi Treasury Bond on September 10, 2024 and sell it today you would lose (41.00) from holding Amundi Treasury Bond or give up 5.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Coor Service Management vs. Amundi Treasury Bond
Performance |
Timeline |
Coor Service Management |
Amundi Treasury Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coor Service and Amundi Treasury Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coor Service and Amundi Treasury
The main advantage of trading using opposite Coor Service and Amundi Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service position performs unexpectedly, Amundi Treasury 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 Treasury will offset losses from the drop in Amundi Treasury's long position.Coor Service vs. Hong Kong Land | Coor Service vs. Ithaca Energy PLC | Coor Service vs. GRIT Real Estate | Coor Service vs. SANTANDER UK 10 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |