Correlation Between Pioneer Fundamental and Amundi Climate

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

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

Diversification Opportunities for Pioneer Fundamental and Amundi Climate

0.37

Correlation Coefficient

Pioneer Fundamental  Amundi Climate

Weak diversification

The 3 months correlation between Pioneer and Amundi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Fundamental Growth and Amundi Climate Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Climate Transition and Pioneer Fundamental 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 Pioneer Fundamental Growth are associated (or correlated) with Amundi Climate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Climate Transition has no effect on the direction of Pioneer Fundamental i.e., Pioneer Fundamental and Amundi Climate go up and down completely randomly.

Pair Corralation between Pioneer Fundamental and Amundi Climate

Assuming the 90 days horizon Pioneer Fundamental Growth is expected to under-perform the Amundi Climate. In addition to that, Pioneer Fundamental is 3.47 times more volatile than Amundi Climate Transition. It trades about -0.09 of its total potential returns per unit of risk. Amundi Climate Transition is currently generating about 0.05 per unit of volatility. If you would invest  956.00  in Amundi Climate Transition on December 21, 2024 and sell it today you would earn a total of  4.00  from holding Amundi Climate Transition or generate 0.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	45.76%
Values	Daily Returns

Pioneer Fundamental Growth  vs.  Amundi Climate Transition

Pioneer Fundamental

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pioneer Fundamental Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Pioneer Fundamental is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amundi Climate Transition

Risk-Adjusted Performance

Insignificant

Over the last 90 days Amundi Climate Transition has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking signals, Amundi Climate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pioneer Fundamental and Amundi Climate

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

The idea behind Pioneer Fundamental Growth and Amundi Climate Transition 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.