Correlation Between Groupama Entreprises and JPM America
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By analyzing existing cross correlation between Groupama Entreprises N and JPM America Equity, you can compare the effects of market volatilities on Groupama Entreprises and JPM America 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 JPM America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and JPM America.
Diversification Opportunities for Groupama Entreprises and JPM America
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Groupama and JPM is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and JPM America Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM America Equity 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 JPM America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM America Equity has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and JPM America go up and down completely randomly.
Pair Corralation between Groupama Entreprises and JPM America
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 26.87 times less return on investment than JPM America. But when comparing it to its historical volatility, Groupama Entreprises N is 106.08 times less risky than JPM America. It trades about 0.96 of its potential returns per unit of risk. JPM America Equity is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 40,816 in JPM America Equity on September 1, 2024 and sell it today you would earn a total of 2,899 from holding JPM America Equity or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Groupama Entreprises N vs. JPM America Equity
Performance |
| Timeline |
| Groupama Entreprises |
| JPM America Equity |
Groupama Entreprises and JPM America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and JPM America
The main advantage of trading using opposite Groupama Entreprises and JPM America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, JPM America 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 JPM America will offset losses from the drop in JPM America's long position.| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Xtrackers ShortDAX |
| JPM America vs. Groupama Entreprises N | JPM America vs. Renaissance Europe C | JPM America vs. Superior Plus Corp | JPM America 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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