Correlation Between Intel and Amundi Actions

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

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

Diversification Opportunities for Intel and Amundi Actions

0.05

Correlation Coefficient

Intel  Amundi Actions

Significant diversification

The 3 months correlation between Intel and Amundi is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Amundi Actions Internationales in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Actions Inter and Intel 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 Intel are associated (or correlated) with Amundi Actions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Actions Inter has no effect on the direction of Intel i.e., Intel and Amundi Actions go up and down completely randomly.

Pair Corralation between Intel and Amundi Actions

Assuming the 90 days trading horizon Intel is expected to under-perform the Amundi Actions. In addition to that, Intel is 4.81 times more volatile than Amundi Actions Internationales. It trades about -0.05 of its total potential returns per unit of risk. Amundi Actions Internationales is currently generating about 0.08 per unit of volatility. If you would invest  3,023  in Amundi Actions Internationales on September 29, 2024 and sell it today you would earn a total of  271.00  from holding Amundi Actions Internationales or generate 8.96% return on investment over 90 days.

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

Intel  vs.  Amundi Actions Internationales

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

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

Amundi Actions Inter

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi Actions Internationales are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat fragile basic indicators, Amundi Actions may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Intel and Amundi Actions

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

The idea behind Intel and Amundi Actions Internationales 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 Transaction History module to view history of all your transactions and understand their impact on performance.