Correlation Between Groupama Entreprises and BEKA LUX
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By analyzing existing cross correlation between Groupama Entreprises N and BEKA LUX SICAV, you can compare the effects of market volatilities on Groupama Entreprises and BEKA LUX 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 BEKA LUX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and BEKA LUX.
Diversification Opportunities for Groupama Entreprises and BEKA LUX
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Groupama and BEKA is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and BEKA LUX SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEKA LUX SICAV 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 BEKA LUX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEKA LUX SICAV has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and BEKA LUX go up and down completely randomly.
Pair Corralation between Groupama Entreprises and BEKA LUX
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 2.5 times less return on investment than BEKA LUX. But when comparing it to its historical volatility, Groupama Entreprises N is 19.22 times less risky than BEKA LUX. It trades about 0.73 of its potential returns per unit of risk. BEKA LUX SICAV is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,724 in BEKA LUX SICAV on August 29, 2024 and sell it today you would earn a total of 50.00 from holding BEKA LUX SICAV or generate 0.57% 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. BEKA LUX SICAV
Performance |
| Timeline |
| Groupama Entreprises |
| BEKA LUX SICAV |
Groupama Entreprises and BEKA LUX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and BEKA LUX
The main advantage of trading using opposite Groupama Entreprises and BEKA LUX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, BEKA LUX 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 BEKA LUX will offset losses from the drop in BEKA LUX's long position.| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers ShortDAX | Groupama Entreprises vs. Xtrackers LevDAX |
| BEKA LUX vs. Groupama Entreprises N | BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. Superior Plus Corp | BEKA LUX 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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