Correlation Between Amundi Treasury and Coor Service
Can any of the company-specific risk be diversified away by investing in both Amundi Treasury and Coor Service 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 Coor Service 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 Coor Service Management, you can compare the effects of market volatilities on Amundi Treasury and Coor Service 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 Coor Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Treasury and Coor Service.
Diversification Opportunities for Amundi Treasury and Coor Service
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amundi and Coor is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Treasury Bond and Coor Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coor Service Management 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 Coor Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coor Service Management has no effect on the direction of Amundi Treasury i.e., Amundi Treasury and Coor Service go up and down completely randomly.
Pair Corralation between Amundi Treasury and Coor Service
Assuming the 90 days trading horizon Amundi Treasury Bond is expected to generate 0.5 times more return on investment than Coor Service. However, Amundi Treasury Bond is 1.99 times less risky than Coor Service. It trades about 0.11 of its potential returns per unit of risk. Coor Service Management is currently generating about -0.29 per unit of risk. If you would invest 712.00 in Amundi Treasury Bond on September 5, 2024 and sell it today you would earn a total of 14.00 from holding Amundi Treasury Bond or generate 1.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Amundi Treasury Bond vs. Coor Service Management
Performance |
Timeline |
Amundi Treasury Bond |
Coor Service Management |
Amundi Treasury and Coor Service Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amundi Treasury and Coor Service
The main advantage of trading using opposite Amundi Treasury and Coor Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Treasury position performs unexpectedly, Coor Service 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 Coor Service will offset losses from the drop in Coor Service'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 |
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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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