Correlation Between Amundi EURO and Invesco AT1
Can any of the company-specific risk be diversified away by investing in both Amundi EURO and Invesco AT1 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 EURO and Invesco AT1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi EURO STOXX and Invesco AT1 Capital, you can compare the effects of market volatilities on Amundi EURO and Invesco AT1 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 EURO with a short position of Invesco AT1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi EURO and Invesco AT1.
Diversification Opportunities for Amundi EURO and Invesco AT1
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amundi and Invesco is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Amundi EURO STOXX and Invesco AT1 Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco AT1 Capital and Amundi EURO 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 EURO STOXX are associated (or correlated) with Invesco AT1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco AT1 Capital has no effect on the direction of Amundi EURO i.e., Amundi EURO and Invesco AT1 go up and down completely randomly.
Pair Corralation between Amundi EURO and Invesco AT1
Assuming the 90 days trading horizon Amundi EURO STOXX is expected to generate 4.13 times more return on investment than Invesco AT1. However, Amundi EURO is 4.13 times more volatile than Invesco AT1 Capital. It trades about 0.14 of its potential returns per unit of risk. Invesco AT1 Capital is currently generating about 0.21 per unit of risk. If you would invest 5,916 in Amundi EURO STOXX on September 2, 2025 and sell it today you would earn a total of 385.00 from holding Amundi EURO STOXX or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi EURO STOXX vs. Invesco AT1 Capital
Performance |
| Timeline |
| Amundi EURO STOXX |
| Invesco AT1 Capital |
Amundi EURO and Invesco AT1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi EURO and Invesco AT1
The main advantage of trading using opposite Amundi EURO and Invesco AT1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi EURO position performs unexpectedly, Invesco AT1 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 Invesco AT1 will offset losses from the drop in Invesco AT1's long position.| Amundi EURO vs. Amundi MSCI Semiconductors | Amundi EURO vs. Amundi Index Solutions | Amundi EURO vs. Amundi Index Solutions | Amundi EURO vs. Amundi Index Solutions |
| Invesco AT1 vs. Invesco CoinShares Global | Invesco AT1 vs. Invesco EURO STOXX | Invesco AT1 vs. Invesco FTSE RAFI | Invesco AT1 vs. Invesco Health Care |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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