Correlation Between HANetf ICAV and Amundi Index
Can any of the company-specific risk be diversified away by investing in both HANetf ICAV and Amundi Index 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 HANetf ICAV and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HANetf ICAV and Amundi Index Solutions, you can compare the effects of market volatilities on HANetf ICAV and Amundi Index 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 HANetf ICAV with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANetf ICAV and Amundi Index.
Diversification Opportunities for HANetf ICAV and Amundi Index
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HANetf and Amundi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding HANetf ICAV and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and HANetf ICAV 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 HANetf ICAV are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of HANetf ICAV i.e., HANetf ICAV and Amundi Index go up and down completely randomly.
Pair Corralation between HANetf ICAV and Amundi Index
Assuming the 90 days trading horizon HANetf ICAV is expected to generate 1.88 times more return on investment than Amundi Index. However, HANetf ICAV is 1.88 times more volatile than Amundi Index Solutions. It trades about -0.05 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about -0.22 per unit of risk. If you would invest 1,434 in HANetf ICAV on October 4, 2024 and sell it today you would lose (22.00) from holding HANetf ICAV or give up 1.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
HANetf ICAV vs. Amundi Index Solutions
Performance |
Timeline |
HANetf ICAV |
Amundi Index Solutions |
HANetf ICAV and Amundi Index Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HANetf ICAV and Amundi Index
The main advantage of trading using opposite HANetf ICAV and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANetf ICAV position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.HANetf ICAV vs. UBS Fund Solutions | HANetf ICAV vs. Xtrackers II | HANetf ICAV vs. Xtrackers Nikkei 225 | HANetf ICAV vs. iShares VII PLC |
Amundi Index vs. UBS Fund Solutions | Amundi Index vs. Xtrackers II | Amundi Index vs. Xtrackers Nikkei 225 | Amundi Index vs. iShares VII PLC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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