Correlation Between BlackRock ESG and Amundi EUR
Can any of the company-specific risk be diversified away by investing in both BlackRock ESG and Amundi EUR 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 BlackRock ESG and Amundi EUR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock ESG Multi Asset and Amundi EUR High, you can compare the effects of market volatilities on BlackRock ESG and Amundi EUR 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 BlackRock ESG with a short position of Amundi EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock ESG and Amundi EUR.
Diversification Opportunities for BlackRock ESG and Amundi EUR
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BlackRock and Amundi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Multi Asset and Amundi EUR High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi EUR High and BlackRock ESG 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 BlackRock ESG Multi Asset are associated (or correlated) with Amundi EUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi EUR High has no effect on the direction of BlackRock ESG i.e., BlackRock ESG and Amundi EUR go up and down completely randomly.
Pair Corralation between BlackRock ESG and Amundi EUR
Assuming the 90 days trading horizon BlackRock ESG Multi Asset is expected to generate 1.68 times more return on investment than Amundi EUR. However, BlackRock ESG is 1.68 times more volatile than Amundi EUR High. It trades about 0.09 of its potential returns per unit of risk. Amundi EUR High is currently generating about 0.11 per unit of risk. If you would invest 521.00 in BlackRock ESG Multi Asset on October 11, 2024 and sell it today you would earn a total of 101.00 from holding BlackRock ESG Multi Asset or generate 19.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
BlackRock ESG Multi Asset vs. Amundi EUR High
Performance |
Timeline |
BlackRock ESG Multi |
Amundi EUR High |
BlackRock ESG and Amundi EUR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BlackRock ESG and Amundi EUR
The main advantage of trading using opposite BlackRock ESG and Amundi EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock ESG position performs unexpectedly, Amundi EUR 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 EUR will offset losses from the drop in Amundi EUR's long position.BlackRock ESG vs. Leverage Shares 3x | BlackRock ESG vs. WisdomTree Natural Gas | BlackRock ESG vs. GraniteShares 3x Short | BlackRock ESG vs. WisdomTree Natural Gas |
Amundi EUR vs. Amundi Index Solutions | Amundi EUR vs. Amundi MSCI Pacific | Amundi EUR vs. Amundi MSCI Europe | Amundi EUR vs. Amundi Index Solutions |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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