Correlation Between Groupama Entreprises and ALM Offensif
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By analyzing existing cross correlation between Groupama Entreprises N and ALM Offensif, you can compare the effects of market volatilities on Groupama Entreprises and ALM Offensif 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 Groupama Entreprises with a short position of ALM Offensif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and ALM Offensif.
Diversification Opportunities for Groupama Entreprises and ALM Offensif
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Groupama and ALM is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and ALM Offensif in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Offensif and Groupama Entreprises 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 Groupama Entreprises N are associated (or correlated) with ALM Offensif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Offensif has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and ALM Offensif go up and down completely randomly.
Pair Corralation between Groupama Entreprises and ALM Offensif
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 8.15 times less return on investment than ALM Offensif. But when comparing it to its historical volatility, Groupama Entreprises N is 38.21 times less risky than ALM Offensif. It trades about 1.01 of its potential returns per unit of risk. ALM Offensif is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 30,202 in ALM Offensif on September 7, 2024 and sell it today you would earn a total of 1,930 from holding ALM Offensif or generate 6.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 96.92% |
Values | Daily Returns |
Groupama Entreprises N vs. ALM Offensif
Performance |
Timeline |
Groupama Entreprises |
ALM Offensif |
Groupama Entreprises and ALM Offensif Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Groupama Entreprises and ALM Offensif
The main advantage of trading using opposite Groupama Entreprises and ALM Offensif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, ALM Offensif 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 ALM Offensif will offset losses from the drop in ALM Offensif's long position.Groupama Entreprises vs. IE00B0H4TS55 | Groupama Entreprises vs. CM AM Monplus NE | Groupama Entreprises vs. R co Valor F | Groupama Entreprises vs. ALM ES Actions |
ALM Offensif vs. ALM ES Actions | ALM Offensif vs. ALM Classic RA | ALM Offensif vs. Esfera Robotics R | ALM Offensif vs. R co Valor F |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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