Correlation Between BerolinaCapital Premium and Amundi 3

Can any of the company-specific risk be diversified away by investing in both BerolinaCapital Premium and Amundi 3 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 BerolinaCapital Premium and Amundi 3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BerolinaCapital Premium and Amundi 3 Mois, you can compare the effects of market volatilities on BerolinaCapital Premium and Amundi 3 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 BerolinaCapital Premium with a short position of Amundi 3. Check out your portfolio center. Please also check ongoing floating volatility patterns of BerolinaCapital Premium and Amundi 3.

Diversification Opportunities for BerolinaCapital Premium and Amundi 3

0.62

Correlation Coefficient

BerolinaCapital Premium  Amundi 3

Poor diversification

The 3 months correlation between BerolinaCapital and Amundi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding BerolinaCapital Premium and Amundi 3 Mois in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi 3 Mois and BerolinaCapital Premium 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 BerolinaCapital Premium are associated (or correlated) with Amundi 3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi 3 Mois has no effect on the direction of BerolinaCapital Premium i.e., BerolinaCapital Premium and Amundi 3 go up and down completely randomly.

Pair Corralation between BerolinaCapital Premium and Amundi 3

Assuming the 90 days trading horizon BerolinaCapital Premium is expected to generate 91.91 times more return on investment than Amundi 3. However, BerolinaCapital Premium is 91.91 times more volatile than Amundi 3 Mois. It trades about 0.07 of its potential returns per unit of risk. Amundi 3 Mois is currently generating about 1.4 per unit of risk. If you would invest  8,557  in BerolinaCapital Premium on October 22, 2024 and sell it today you would earn a total of  873.00  from holding BerolinaCapital Premium or generate 10.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	35.0%
Values	Daily Returns

BerolinaCapital Premium  vs.  Amundi 3 Mois

BerolinaCapital Premium

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BerolinaCapital Premium are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable fundamental indicators, BerolinaCapital Premium is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Amundi 3 Mois

Risk-Adjusted Performance

96 of 100

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi 3 Mois are ranked lower than 96 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Amundi 3 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BerolinaCapital Premium and Amundi 3

The main advantage of trading using opposite BerolinaCapital Premium and Amundi 3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BerolinaCapital Premium position performs unexpectedly, Amundi 3 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 3 will offset losses from the drop in Amundi 3's long position.

The idea behind BerolinaCapital Premium and Amundi 3 Mois 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.