Correlation Between Amundi SA and T Rowe
Can any of the company-specific risk be diversified away by investing in both Amundi SA and T Rowe 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 T Rowe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi SA and T Rowe Price, you can compare the effects of market volatilities on Amundi SA and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SA and T Rowe.
Diversification Opportunities for Amundi SA and T Rowe
Modest diversification
The 3 months correlation between Amundi and TROW is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SA and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Amundi SA i.e., Amundi SA and T Rowe go up and down completely randomly.
Pair Corralation between Amundi SA and T Rowe
Assuming the 90 days horizon Amundi SA is expected to generate 1.7 times more return on investment than T Rowe. However, Amundi SA is 1.7 times more volatile than T Rowe Price. It trades about 0.09 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.08 per unit of risk. If you would invest 5,400 in Amundi SA on January 20, 2024 and sell it today you would earn a total of 1,654 from holding Amundi SA or generate 30.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Amundi SA vs. T Rowe Price
Performance |
| Timeline |
| Amundi SA |
| T Rowe Price |
Amundi SA and T Rowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SA and T Rowe
The main advantage of trading using opposite Amundi SA and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SA position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.| Amundi SA vs. Flow Capital Corp | Amundi SA vs. Blackhawk Growth Corp | Amundi SA vs. AGF Management Limited |
| T Rowe vs. Invesco Plc | T Rowe vs. Bank of New | T Rowe vs. Principal Financial Group | T Rowe vs. Ameriprise Financial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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