Correlation Between Amundi SA and Northern Trust
Can any of the company-specific risk be diversified away by investing in both Amundi SA and Northern Trust 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 SA and Northern Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi SA and Northern Trust, you can compare the effects of market volatilities on Amundi SA and Northern Trust 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 SA with a short position of Northern Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SA and Northern Trust.
Diversification Opportunities for Amundi SA and Northern Trust
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and Northern is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SA and Northern Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Trust and Amundi SA 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 SA are associated (or correlated) with Northern Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Trust has no effect on the direction of Amundi SA i.e., Amundi SA and Northern Trust go up and down completely randomly.
Pair Corralation between Amundi SA and Northern Trust
Assuming the 90 days horizon Amundi SA is expected to generate 0.79 times more return on investment than Northern Trust. However, Amundi SA is 1.26 times less risky than Northern Trust. It trades about 0.22 of its potential returns per unit of risk. Northern Trust is currently generating about -0.08 per unit of risk. If you would invest 6,647 in Amundi SA on January 20, 2024 and sell it today you would earn a total of 407.00 from holding Amundi SA or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amundi SA vs. Northern Trust
Performance |
| Timeline |
| Amundi SA |
| Northern Trust |
Amundi SA and Northern Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SA and Northern Trust
The main advantage of trading using opposite Amundi SA and Northern Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SA position performs unexpectedly, Northern Trust 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 Northern Trust will offset losses from the drop in Northern Trust's long position.| Amundi SA vs. Flow Capital Corp | Amundi SA vs. Blackhawk Growth Corp | Amundi SA vs. AGF Management Limited |
| Northern Trust vs. Bank of New | Northern Trust vs. Invesco Plc | Northern Trust vs. Franklin Resources | Northern Trust vs. T Rowe Price |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |