Correlation Between Cboe UK and Amundi ETF
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By analyzing existing cross correlation between Cboe UK Consumer and Amundi ETF SP, you can compare the effects of market volatilities on Cboe UK and Amundi ETF 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 Cboe UK with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Amundi ETF.
Diversification Opportunities for Cboe UK and Amundi ETF
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cboe and Amundi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Amundi ETF SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF SP and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF SP has no effect on the direction of Cboe UK i.e., Cboe UK and Amundi ETF go up and down completely randomly.
Pair Corralation between Cboe UK and Amundi ETF
Assuming the 90 days trading horizon Cboe UK is expected to generate 1.52 times less return on investment than Amundi ETF. But when comparing it to its historical volatility, Cboe UK Consumer is 1.39 times less risky than Amundi ETF. It trades about 0.13 of its potential returns per unit of risk. Amundi ETF SP is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6,429 in Amundi ETF SP on October 27, 2024 and sell it today you would earn a total of 163.00 from holding Amundi ETF SP or generate 2.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cboe UK Consumer vs. Amundi ETF SP
Performance |
Timeline |
Cboe UK and Amundi ETF Volatility Contrast
Predicted Return Density |
Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Amundi ETF SP
Pair trading matchups for Amundi ETF
Pair Trading with Cboe UK and Amundi ETF
The main advantage of trading using opposite Cboe UK and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Amundi ETF 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 ETF will offset losses from the drop in Amundi ETF's long position.Cboe UK vs. Geely Automobile Holdings | Cboe UK vs. Chrysalis Investments | Cboe UK vs. New Residential Investment | Cboe UK vs. Vietnam Enterprise Investments |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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