Correlation Between Groupama Entreprises and SISF BRIC
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By analyzing existing cross correlation between Groupama Entreprises N and SISF BRIC AC, you can compare the effects of market volatilities on Groupama Entreprises and SISF BRIC 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 SISF BRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and SISF BRIC.
Diversification Opportunities for Groupama Entreprises and SISF BRIC
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Groupama and SISF is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and SISF BRIC AC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SISF BRIC AC 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 SISF BRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SISF BRIC AC has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and SISF BRIC go up and down completely randomly.
Pair Corralation between Groupama Entreprises and SISF BRIC
Assuming the 90 days trading horizon Groupama Entreprises is expected to generate 5.45 times less return on investment than SISF BRIC. But when comparing it to its historical volatility, Groupama Entreprises N is 88.56 times less risky than SISF BRIC. It trades about 0.97 of its potential returns per unit of risk. SISF BRIC AC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 18,595 in SISF BRIC AC on August 26, 2024 and sell it today you would earn a total of 2,543 from holding SISF BRIC AC or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 39.29% |
| Values | Daily Returns |
Groupama Entreprises N vs. SISF BRIC AC
Performance |
| Timeline |
| Groupama Entreprises |
| SISF BRIC AC |
Groupama Entreprises and SISF BRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and SISF BRIC
The main advantage of trading using opposite Groupama Entreprises and SISF BRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, SISF BRIC 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 SISF BRIC will offset losses from the drop in SISF BRIC's long position.| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Xtrackers ShortDAX |
| SISF BRIC vs. Esfera Robotics R | SISF BRIC vs. R co Valor F | SISF BRIC vs. CM AM Monplus NE | SISF BRIC 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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