Correlation Between Groupama Entreprises and BNY Mellon
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By analyzing existing cross correlation between Groupama Entreprises N and BNY Mellon Global, you can compare the effects of market volatilities on Groupama Entreprises and BNY Mellon 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 BNY Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and BNY Mellon.
Diversification Opportunities for Groupama Entreprises and BNY Mellon
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Groupama and BNY is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and BNY Mellon Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNY Mellon Global 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 BNY Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNY Mellon Global has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and BNY Mellon go up and down completely randomly.
Pair Corralation between Groupama Entreprises and BNY Mellon
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 1.37 times less return on investment than BNY Mellon. But when comparing it to its historical volatility, Groupama Entreprises N is 30.5 times less risky than BNY Mellon. It trades about 0.99 of its potential returns per unit of risk. BNY Mellon Global is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 161.00 in BNY Mellon Global on September 14, 2024 and sell it today you would earn a total of 6.00 from holding BNY Mellon Global or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 41.35% |
| Values | Daily Returns |
Groupama Entreprises N vs. BNY Mellon Global
Performance |
| Timeline |
| Groupama Entreprises |
| BNY Mellon Global |
Groupama Entreprises and BNY Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and BNY Mellon
The main advantage of trading using opposite Groupama Entreprises and BNY Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, BNY Mellon 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 BNY Mellon will offset losses from the drop in BNY Mellon'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 |
| BNY Mellon vs. Lord Abbett Short | BNY Mellon vs. R co Valor F | BNY Mellon vs. Barings Global Umbrella | BNY Mellon vs. iShares Equity Enhanced |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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