Correlation Between Amundi Physical and DB Physical

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Can any of the company-specific risk be diversified away by investing in both Amundi Physical and DB Physical 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 Physical and DB Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Physical Gold and DB Physical Gold, you can compare the effects of market volatilities on Amundi Physical and DB Physical 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 Physical with a short position of DB Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Physical and DB Physical.

Diversification Opportunities for Amundi Physical and DB Physical

0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Amundi and XGLS is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Physical Gold and DB Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Physical Gold and Amundi Physical 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 Physical Gold are associated (or correlated) with DB Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Physical Gold has no effect on the direction of Amundi Physical i.e., Amundi Physical and DB Physical go up and down completely randomly.

Pair Corralation between Amundi Physical and DB Physical

Assuming the 90 days trading horizon Amundi Physical Gold is expected to generate 0.97 times more return on investment than DB Physical. However, Amundi Physical Gold is 1.03 times less risky than DB Physical. It trades about 0.1 of its potential returns per unit of risk. DB Physical Gold is currently generating about 0.0 per unit of risk. If you would invest  782,338  in Amundi Physical Gold on September 23, 2024 and sell it today you would earn a total of  45,312  from holding Amundi Physical Gold or generate 5.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Amundi Physical Gold  vs.  DB Physical Gold

 Performance 
       Timeline  
Amundi Physical Gold 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Amundi Physical Gold are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Amundi Physical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
DB Physical Gold 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days DB Physical Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, DB Physical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Amundi Physical and DB Physical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amundi Physical and DB Physical

The main advantage of trading using opposite Amundi Physical and DB Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Physical position performs unexpectedly, DB Physical 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 DB Physical will offset losses from the drop in DB Physical's long position.
The idea behind Amundi Physical Gold and DB Physical Gold 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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