Correlation Between Amundi Treasury and IShares Nasdaq

Can any of the company-specific risk be diversified away by investing in both Amundi Treasury and IShares Nasdaq 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 IShares Nasdaq 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 iShares Nasdaq Biotechnology, you can compare the effects of market volatilities on Amundi Treasury and IShares Nasdaq 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 IShares Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Treasury and IShares Nasdaq.

Diversification Opportunities for Amundi Treasury and IShares Nasdaq

0.59

Correlation Coefficient

Amundi Treasury  IShares Nasdaq

Very weak diversification

The 3 months correlation between Amundi and IShares is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Treasury Bond and iShares Nasdaq Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Nasdaq Biote 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 IShares Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Nasdaq Biote has no effect on the direction of Amundi Treasury i.e., Amundi Treasury and IShares Nasdaq go up and down completely randomly.

Pair Corralation between Amundi Treasury and IShares Nasdaq

Assuming the 90 days trading horizon Amundi Treasury Bond is expected to under-perform the IShares Nasdaq. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Treasury Bond is 1.2 times less risky than IShares Nasdaq. The etf trades about -0.01 of its potential returns per unit of risk. The iShares Nasdaq Biotechnology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  613.00  in iShares Nasdaq Biotechnology on October 3, 2024 and sell it today you would earn a total of  12.00  from holding iShares Nasdaq Biotechnology or generate 1.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Amundi Treasury Bond  vs.  iShares Nasdaq Biotechnology

Amundi Treasury Bond

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amundi Treasury Bond has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

iShares Nasdaq Biote

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares Nasdaq Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with Amundi Treasury and IShares Nasdaq

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

The idea behind Amundi Treasury Bond and iShares Nasdaq Biotechnology 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.