Correlation Between Amundi Index and Compagnie

Can any of the company-specific risk be diversified away by investing in both Amundi Index and Compagnie 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 Compagnie 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 Compagnie de Chemins, you can compare the effects of market volatilities on Amundi Index and Compagnie 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 Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Compagnie.

Diversification Opportunities for Amundi Index and Compagnie

0.0

Correlation Coefficient

Amundi Index  Compagnie

Pay attention - limited upside

The 3 months correlation between Amundi and Compagnie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Compagnie de Chemins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de Chemins 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 Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de Chemins has no effect on the direction of Amundi Index i.e., Amundi Index and Compagnie go up and down completely randomly.

Pair Corralation between Amundi Index and Compagnie

Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.11 times more return on investment than Compagnie. However, Amundi Index Solutions is 8.74 times less risky than Compagnie. It trades about -0.07 of its potential returns per unit of risk. Compagnie de Chemins is currently generating about -0.07 per unit of risk. If you would invest  21,990  in Amundi Index Solutions on December 26, 2024 and sell it today you would lose (359.00) from holding Amundi Index Solutions or give up 1.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Amundi Index Solutions  vs.  Compagnie de Chemins

Amundi Index Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amundi Index Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Amundi Index is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Compagnie de Chemins

Risk-Adjusted Performance

Very Weak

Over the last 90 days Compagnie de Chemins has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Amundi Index and Compagnie

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

The idea behind Amundi Index Solutions and Compagnie de Chemins 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.