Correlation Between Groupama Entreprises and ALM ES
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By analyzing existing cross correlation between Groupama Entreprises N and ALM ES Actions, you can compare the effects of market volatilities on Groupama Entreprises and ALM ES 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 ES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and ALM ES.
Diversification Opportunities for Groupama Entreprises and ALM ES
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Groupama and ALM is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and ALM ES Actions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM ES Actions 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 ES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM ES Actions has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and ALM ES go up and down completely randomly.
Pair Corralation between Groupama Entreprises and ALM ES
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 3.32 times less return on investment than ALM ES. But when comparing it to its historical volatility, Groupama Entreprises N is 48.63 times less risky than ALM ES. It trades about 0.95 of its potential returns per unit of risk. ALM ES Actions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 11,797 in ALM ES Actions on October 12, 2024 and sell it today you would earn a total of 979.00 from holding ALM ES Actions or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Groupama Entreprises N vs. ALM ES Actions
Performance |
| Timeline |
| Groupama Entreprises |
| ALM ES Actions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Groupama Entreprises and ALM ES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and ALM ES
The main advantage of trading using opposite Groupama Entreprises and ALM ES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, ALM ES 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 ES will offset losses from the drop in ALM ES'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 |
| ALM ES vs. Groupama Entreprises N | ALM ES vs. Renaissance Europe C | ALM ES vs. Superior Plus Corp | ALM ES 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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