Correlation Between Amundi Treasury and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Amundi Treasury and Surgical Science 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 Amundi Treasury and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Treasury Bond and Surgical Science Sweden, you can compare the effects of market volatilities on Amundi Treasury and Surgical Science 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 Amundi Treasury with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Treasury and Surgical Science.
Diversification Opportunities for Amundi Treasury and Surgical Science
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and Surgical is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Treasury Bond and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden and Amundi Treasury 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 Amundi Treasury Bond are associated (or correlated) with Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Amundi Treasury i.e., Amundi Treasury and Surgical Science go up and down completely randomly.
Pair Corralation between Amundi Treasury and Surgical Science
Assuming the 90 days trading horizon Amundi Treasury is expected to generate 6.24 times less return on investment than Surgical Science. But when comparing it to its historical volatility, Amundi Treasury Bond is 4.72 times less risky than Surgical Science. It trades about 0.14 of its potential returns per unit of risk. Surgical Science Sweden is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 13,050 in Surgical Science Sweden on September 6, 2024 and sell it today you would earn a total of 1,930 from holding Surgical Science Sweden or generate 14.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amundi Treasury Bond vs. Surgical Science Sweden
Performance |
Timeline |
Amundi Treasury Bond |
Surgical Science Sweden |
Amundi Treasury and Surgical Science Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amundi Treasury and Surgical Science
The main advantage of trading using opposite Amundi Treasury and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Treasury position performs unexpectedly, Surgical Science 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 Surgical Science will offset losses from the drop in Surgical Science's long position.Amundi Treasury vs. Amundi EUR High | Amundi Treasury vs. Amundi Index Solutions | Amundi Treasury vs. Amundi MSCI Pacific | Amundi Treasury vs. Amundi MSCI Europe |
Surgical Science vs. Roebuck Food Group | Surgical Science vs. Check Point Software | Surgical Science vs. Concurrent Technologies Plc | Surgical Science vs. Bell Food Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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