Correlation Between Groupama Entreprises and Volkswagen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Groupama Entreprises N and Volkswagen AG, you can compare the effects of market volatilities on Groupama Entreprises and Volkswagen 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 Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupama Entreprises and Volkswagen.
Diversification Opportunities for Groupama Entreprises and Volkswagen
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Groupama and Volkswagen is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Groupama Entreprises N and Volkswagen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG 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 Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG has no effect on the direction of Groupama Entreprises i.e., Groupama Entreprises and Volkswagen go up and down completely randomly.
Pair Corralation between Groupama Entreprises and Volkswagen
Assuming the 90 days trading horizon Groupama Entreprises N is expected to generate 0.01 times more return on investment than Volkswagen. However, Groupama Entreprises N is 90.23 times less risky than Volkswagen. It trades about 0.96 of its potential returns per unit of risk. Volkswagen AG is currently generating about -0.36 per unit of risk. If you would invest 59,149 in Groupama Entreprises N on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Groupama Entreprises N or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Groupama Entreprises N vs. Volkswagen AG
Performance |
| Timeline |
| Groupama Entreprises |
| Volkswagen AG |
Groupama Entreprises and Volkswagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupama Entreprises and Volkswagen
The main advantage of trading using opposite Groupama Entreprises and Volkswagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupama Entreprises position performs unexpectedly, Volkswagen 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 Volkswagen will offset losses from the drop in Volkswagen's long position.| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Xtrackers ShortDAX |
| Volkswagen vs. SIVERS SEMICONDUCTORS AB | Volkswagen vs. Darden Restaurants | Volkswagen vs. Reliance Steel Aluminum | Volkswagen vs. Q2M Managementberatung AG |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |