Correlation Between Groupama Entreprises and Algebris UCITS
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By analyzing existing cross correlation between Groupama Entreprises N and Algebris UCITS Funds, you can compare the effects of market volatilities on Groupama Entreprises and Algebris UCITS 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 Algebris UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and Algebris UCITS.
Diversification Opportunities for Groupama Entreprises and Algebris UCITS
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Groupama and Algebris is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and Algebris UCITS Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algebris UCITS Funds 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 Algebris UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algebris UCITS Funds has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and Algebris UCITS go up and down completely randomly.
Pair Corralation between Groupama Entreprises and Algebris UCITS
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 2.5 times less return on investment than Algebris UCITS. But when comparing it to its historical volatility, Groupama Entreprises N is 12.1 times less risky than Algebris UCITS. It trades about 0.99 of its potential returns per unit of risk. Algebris UCITS Funds is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 12,939 in Algebris UCITS Funds on September 2, 2024 and sell it today you would earn a total of 1,884 from holding Algebris UCITS Funds or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupama Entreprises N vs. Algebris UCITS Funds
Performance |
| Timeline |
| Groupama Entreprises |
| Algebris UCITS Funds |
Groupama Entreprises and Algebris UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and Algebris UCITS
The main advantage of trading using opposite Groupama Entreprises and Algebris UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, Algebris UCITS 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 Algebris UCITS will offset losses from the drop in Algebris UCITS'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 |
| Algebris UCITS vs. Esfera Robotics R | Algebris UCITS vs. R co Valor F | Algebris UCITS vs. CM AM Monplus NE | Algebris UCITS vs. IE00B0H4TS55 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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