Correlation Between Groupama Entreprises and FF Australia
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By analyzing existing cross correlation between Groupama Entreprises N and FF Australia, you can compare the effects of market volatilities on Groupama Entreprises and FF Australia 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 FF Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and FF Australia.
Diversification Opportunities for Groupama Entreprises and FF Australia
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Groupama and FPGK is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and FF Australia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FF Australia 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 FF Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FF Australia has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and FF Australia go up and down completely randomly.
Pair Corralation between Groupama Entreprises and FF Australia
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 6.12 times less return on investment than FF Australia. But when comparing it to its historical volatility, Groupama Entreprises N is 84.4 times less risky than FF Australia. It trades about 0.97 of its potential returns per unit of risk. FF Australia is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,137 in FF Australia on September 3, 2024 and sell it today you would earn a total of 830.00 from holding FF Australia or generate 16.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 40.08% |
| Values | Daily Returns |
Groupama Entreprises N vs. FF Australia
Performance |
| Timeline |
| Groupama Entreprises |
| FF Australia |
Groupama Entreprises and FF Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and FF Australia
The main advantage of trading using opposite Groupama Entreprises and FF Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, FF Australia 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 FF Australia will offset losses from the drop in FF Australia's long position.| Groupama Entreprises vs. Xtrackers ShortDAX | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Lyxor 1 |
| FF Australia vs. Groupama Entreprises N | FF Australia vs. Renaissance Europe C | FF Australia vs. Superior Plus Corp | FF Australia 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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