Correlation Between Groupama Entreprises and Renaissance Europe
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By analyzing existing cross correlation between Groupama Entreprises N and Renaissance Europe C, you can compare the effects of market volatilities on Groupama Entreprises and Renaissance Europe 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 Renaissance Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and Renaissance Europe.
Diversification Opportunities for Groupama Entreprises and Renaissance Europe
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Groupama and Renaissance is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and Renaissance Europe C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renaissance Europe 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 Renaissance Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renaissance Europe has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and Renaissance Europe go up and down completely randomly.
Pair Corralation between Groupama Entreprises and Renaissance Europe
Assuming the 90 days trading horizon Groupama Entreprises N is expected to generate 0.01 times more return on investment than Renaissance Europe. However, Groupama Entreprises N is 74.83 times less risky than Renaissance Europe. It trades about 0.96 of its potential returns per unit of risk. Renaissance Europe C is currently generating about -0.03 per unit of risk. If you would invest 59,149 in Groupama Entreprises N on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Groupama Entreprises N or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupama Entreprises N vs. Renaissance Europe C
Performance |
| Timeline |
| Groupama Entreprises |
| Renaissance Europe |
Groupama Entreprises and Renaissance Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and Renaissance Europe
The main advantage of trading using opposite Groupama Entreprises and Renaissance Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, Renaissance Europe 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 Renaissance Europe will offset losses from the drop in Renaissance Europe's long position.| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Xtrackers ShortDAX |
| Renaissance Europe vs. Echiquier Major SRI | Renaissance Europe vs. Superior Plus Corp | Renaissance Europe vs. Origin Agritech | Renaissance Europe vs. Identiv |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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