Correlation Between Amundi Index and Granite 3x
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Granite 3x 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 Index and Granite 3x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and Granite 3x LVMH, you can compare the effects of market volatilities on Amundi Index and Granite 3x 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 Index with a short position of Granite 3x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Granite 3x.
Diversification Opportunities for Amundi Index and Granite 3x
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and Granite is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Granite 3x LVMH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite 3x LVMH and Amundi Index 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 Index Solutions are associated (or correlated) with Granite 3x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite 3x LVMH has no effect on the direction of Amundi Index i.e., Amundi Index and Granite 3x go up and down completely randomly.
Pair Corralation between Amundi Index and Granite 3x
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.14 times more return on investment than Granite 3x. However, Amundi Index Solutions is 7.27 times less risky than Granite 3x. It trades about 0.08 of its potential returns per unit of risk. Granite 3x LVMH is currently generating about -0.06 per unit of risk. If you would invest 429.00 in Amundi Index Solutions on September 12, 2024 and sell it today you would earn a total of 98.00 from holding Amundi Index Solutions or generate 22.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 69.64% |
Values | Daily Returns |
Amundi Index Solutions vs. Granite 3x LVMH
Performance |
Timeline |
Amundi Index Solutions |
Granite 3x LVMH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amundi Index and Granite 3x Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amundi Index and Granite 3x
The main advantage of trading using opposite Amundi Index and Granite 3x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Granite 3x 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 Granite 3x will offset losses from the drop in Granite 3x's long position.Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Global Correlations Find global opportunities by holding instruments from different markets |