Correlation Between Groupama Entreprises and BGF Global
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By analyzing existing cross correlation between Groupama Entreprises N and BGF Global Allocation, you can compare the effects of market volatilities on Groupama Entreprises and BGF Global 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 BGF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and BGF Global.
Diversification Opportunities for Groupama Entreprises and BGF Global
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Groupama and BGF is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and BGF Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Global Allocation 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 BGF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Global Allocation has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and BGF Global go up and down completely randomly.
Pair Corralation between Groupama Entreprises and BGF Global
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 12.33 times less return on investment than BGF Global. But when comparing it to its historical volatility, Groupama Entreprises N is 63.82 times less risky than BGF Global. It trades about 0.87 of its potential returns per unit of risk. BGF Global Allocation is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,431 in BGF Global Allocation on November 2, 2024 and sell it today you would earn a total of 116.00 from holding BGF Global Allocation or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupama Entreprises N vs. BGF Global Allocation
Performance |
| Timeline |
| Groupama Entreprises |
| BGF Global Allocation |
Groupama Entreprises and BGF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and BGF Global
The main advantage of trading using opposite Groupama Entreprises and BGF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, BGF Global 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 BGF Global will offset losses from the drop in BGF Global's long position.| Groupama Entreprises vs. BGF Euro Markets | Groupama Entreprises vs. Swedbank Robur Corporate | Groupama Entreprises vs. Caixabank Seleccin Tendencias | Groupama Entreprises vs. JPMIF Bond Fund |
| BGF Global vs. Groupama Entreprises N | BGF Global vs. Renaissance Europe C | BGF Global vs. Superior Plus Corp | BGF Global 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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