Correlation Between Groupama Entreprises and Lord Abbett
Specify exactly 2 symbols:
By analyzing existing cross correlation between Groupama Entreprises N and Lord Abbett Short, you can compare the effects of market volatilities on Groupama Entreprises and Lord Abbett 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and Lord Abbett.
Diversification Opportunities for Groupama Entreprises and Lord Abbett
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Groupama and Lord is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and Lord Abbett Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Short 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 Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Short has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and Lord Abbett go up and down completely randomly.
Pair Corralation between Groupama Entreprises and Lord Abbett
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 2.74 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Groupama Entreprises N is 24.33 times less risky than Lord Abbett. It trades about 0.97 of its potential returns per unit of risk. Lord Abbett Short is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,016 in Lord Abbett Short on September 14, 2024 and sell it today you would earn a total of 114.00 from holding Lord Abbett Short or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupama Entreprises N vs. Lord Abbett Short
Performance |
| Timeline |
| Groupama Entreprises |
| Lord Abbett Short |
Groupama Entreprises and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and Lord Abbett
The main advantage of trading using opposite Groupama Entreprises and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Groupama Entreprises vs. Esfera Robotics R | Groupama Entreprises vs. R co Valor F | Groupama Entreprises vs. CM AM Monplus NE | Groupama Entreprises vs. IE00B0H4TS55 |
| Lord Abbett vs. Groupama Entreprises N | Lord Abbett vs. Renaissance Europe C | Lord Abbett vs. Superior Plus Corp | Lord Abbett vs. Origin Agritech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |