Correlation Between Aberdeen Global and Groupama Entreprises
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By analyzing existing cross correlation between Aberdeen Global Asian and Groupama Entreprises N, you can compare the effects of market volatilities on Aberdeen Global and Groupama Entreprises 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 Aberdeen Global with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Groupama Entreprises.
Diversification Opportunities for Aberdeen Global and Groupama Entreprises
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aberdeen and Groupama is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Asian and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises and Aberdeen Global 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 Aberdeen Global Asian are associated (or correlated) with Groupama Entreprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupama Entreprises has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Groupama Entreprises go up and down completely randomly.
Pair Corralation between Aberdeen Global and Groupama Entreprises
Assuming the 90 days trading horizon Aberdeen Global Asian is expected to generate 66.4 times more return on investment than Groupama Entreprises. However, Aberdeen Global is 66.4 times more volatile than Groupama Entreprises N. It trades about 0.14 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.99 per unit of risk. If you would invest 5,164 in Aberdeen Global Asian on September 12, 2024 and sell it today you would earn a total of 372.00 from holding Aberdeen Global Asian or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Aberdeen Global Asian vs. Groupama Entreprises N
Performance |
| Timeline |
| Aberdeen Global Asian |
| Groupama Entreprises |
Aberdeen Global and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and Groupama Entreprises
The main advantage of trading using opposite Aberdeen Global and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global position performs unexpectedly, Groupama Entreprises 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 Groupama Entreprises will offset losses from the drop in Groupama Entreprises' long position.| Aberdeen Global vs. Azvalor Global Value | Aberdeen Global vs. JPM Global Natural | Aberdeen Global vs. Cobas Global PP | Aberdeen Global vs. Templeton Global AD |
| Groupama Entreprises vs. Xtrackers ShortDAX | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Lyxor 1 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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