Correlation Between Naranja Standard and Groupama Entreprises
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By analyzing existing cross correlation between Naranja Standard Poors and Groupama Entreprises N, you can compare the effects of market volatilities on Naranja Standard and Groupama Entreprises 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 Naranja Standard with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naranja Standard and Groupama Entreprises.
Diversification Opportunities for Naranja Standard and Groupama Entreprises
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Naranja and Groupama is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Naranja Standard Poors and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises and Naranja Standard 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 Naranja Standard Poors are associated (or correlated) with Groupama Entreprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupama Entreprises has no effect on the direction of Naranja Standard i.e., Naranja Standard and Groupama Entreprises go up and down completely randomly.
Pair Corralation between Naranja Standard and Groupama Entreprises
Assuming the 90 days trading horizon Naranja Standard Poors is expected to generate 60.81 times more return on investment than Groupama Entreprises. However, Naranja Standard is 60.81 times more volatile than Groupama Entreprises N. It trades about 0.12 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.99 per unit of risk. If you would invest 8,639 in Naranja Standard Poors on September 13, 2024 and sell it today you would earn a total of 5,125 from holding Naranja Standard Poors or generate 59.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Naranja Standard Poors vs. Groupama Entreprises N
Performance |
| Timeline |
| Naranja Standard Poors |
| Groupama Entreprises |
Naranja Standard and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naranja Standard and Groupama Entreprises
The main advantage of trading using opposite Naranja Standard and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naranja Standard position performs unexpectedly, Groupama Entreprises 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 Groupama Entreprises will offset losses from the drop in Groupama Entreprises' long position.| Naranja Standard vs. Groupama Entreprises N | Naranja Standard vs. Renaissance Europe C | Naranja Standard vs. Superior Plus Corp | Naranja Standard vs. Origin Agritech |
| Groupama Entreprises vs. Xtrackers ShortDAX | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Lyxor 1 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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