Correlation Between Amundi Index and WisdomTree Cloud

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

By analyzing existing cross correlation between Amundi Index Solutions and WisdomTree Cloud Computing, you can compare the effects of market volatilities on Amundi Index and WisdomTree Cloud 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 Index with a short position of WisdomTree Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and WisdomTree Cloud.

Diversification Opportunities for Amundi Index and WisdomTree Cloud

-0.85

Correlation Coefficient

Amundi Index  WisdomTree Cloud

Pay attention - limited upside

The 3 months correlation between Amundi and WisdomTree is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and WisdomTree Cloud Computing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Cloud Com and Amundi Index 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 Index Solutions are associated (or correlated) with WisdomTree Cloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Cloud Com has no effect on the direction of Amundi Index i.e., Amundi Index and WisdomTree Cloud go up and down completely randomly.

Pair Corralation between Amundi Index and WisdomTree Cloud

Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the WisdomTree Cloud. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Index Solutions is 1.64 times less risky than WisdomTree Cloud. The etf trades about -0.13 of its potential returns per unit of risk. The WisdomTree Cloud Computing is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  239,100  in WisdomTree Cloud Computing on October 8, 2024 and sell it today you would earn a total of  60,450  from holding WisdomTree Cloud Computing or generate 25.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Amundi Index Solutions  vs.  WisdomTree Cloud Computing

Amundi Index Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amundi Index Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

WisdomTree Cloud Com

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Cloud Computing are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, WisdomTree Cloud unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amundi Index and WisdomTree Cloud

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

The idea behind Amundi Index Solutions and WisdomTree Cloud Computing 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.