Correlation Between Amundi SA and Bank of New York
Can any of the company-specific risk be diversified away by investing in both Amundi SA and Bank of New York 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 Bank of New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi SA and Bank of New, you can compare the effects of market volatilities on Amundi SA and Bank of New York 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 Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SA and Bank of New York.
Diversification Opportunities for Amundi SA and Bank of New York
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amundi and Bank is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SA and Bank of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York 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 Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of Amundi SA i.e., Amundi SA and Bank of New York go up and down completely randomly.
Pair Corralation between Amundi SA and Bank of New York
Assuming the 90 days horizon Amundi SA is expected to generate 1.37 times more return on investment than Bank of New York. However, Amundi SA is 1.37 times more volatile than Bank of New. It trades about 0.04 of its potential returns per unit of risk. Bank of New is currently generating about 0.05 per unit of risk. If you would invest 5,445 in Amundi SA on January 25, 2024 and sell it today you would earn a total of 1,609 from holding Amundi SA or generate 29.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Amundi SA vs. Bank of New
Performance |
| Timeline |
| Amundi SA |
| Bank of New York |
Amundi SA and Bank of New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SA and Bank of New York
The main advantage of trading using opposite Amundi SA and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SA position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.| Amundi SA vs. Carlyle Secured Lending | Amundi SA vs. Sixth Street Specialty | Amundi SA vs. Golub Capital BDC | Amundi SA vs. Fidus Investment Corp |
| Bank of New York vs. Federated Premier Municipal | Bank of New York vs. Blackrock Muniyield | Bank of New York vs. Diamond Hill Investment | Bank of New York vs. NXG NextGen Infrastructure |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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