Correlation Between HANetf ICAV and Amundi Index

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

HANetf ICAV   vs.  Amundi Index Solutions

 Performance 
       Timeline  
HANetf ICAV 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in HANetf ICAV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, HANetf ICAV reported solid returns over the last few months and may actually be approaching a breakup point.
Amundi Index Solutions 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Amundi Index Solutions are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Amundi Index is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.
The idea behind HANetf ICAV and Amundi Index Solutions 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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