Correlation Between Groupama Entreprises and DWS Aktien
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By analyzing existing cross correlation between Groupama Entreprises N and DWS Aktien Strategie, you can compare the effects of market volatilities on Groupama Entreprises and DWS Aktien 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 DWS Aktien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and DWS Aktien.
Diversification Opportunities for Groupama Entreprises and DWS Aktien
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Groupama and DWS is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and DWS Aktien Strategie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS Aktien Strategie 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 DWS Aktien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS Aktien Strategie has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and DWS Aktien go up and down completely randomly.
Pair Corralation between Groupama Entreprises and DWS Aktien
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 39.99 times less return on investment than DWS Aktien. But when comparing it to its historical volatility, Groupama Entreprises N is 63.6 times less risky than DWS Aktien. It trades about 0.87 of its potential returns per unit of risk. DWS Aktien Strategie is currently generating about 0.55 of returns per unit of risk over similar time horizon. If you would invest 50,187 in DWS Aktien Strategie on November 2, 2024 and sell it today you would earn a total of 4,670 from holding DWS Aktien Strategie or generate 9.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Groupama Entreprises N vs. DWS Aktien Strategie
Performance |
| Timeline |
| Groupama Entreprises |
| DWS Aktien Strategie |
Groupama Entreprises and DWS Aktien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and DWS Aktien
The main advantage of trading using opposite Groupama Entreprises and DWS Aktien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, DWS Aktien 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 DWS Aktien will offset losses from the drop in DWS Aktien's long position.| Groupama Entreprises vs. BGF Euro Markets | Groupama Entreprises vs. Caixabank Seleccin Tendencias | Groupama Entreprises vs. JPMIF Bond Fund |
| DWS Aktien vs. Esfera Robotics R | DWS Aktien vs. R co Valor F | DWS Aktien vs. CM AM Monplus NE | DWS Aktien 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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