Correlation Between AXA World and Groupama Entreprises
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By analyzing existing cross correlation between AXA World Funds and Groupama Entreprises N, you can compare the effects of market volatilities on AXA World 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 AXA World with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA World and Groupama Entreprises.
Diversification Opportunities for AXA World and Groupama Entreprises
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AXA and Groupama is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding AXA World Funds and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises and AXA World 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 AXA World Funds 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 AXA World i.e., AXA World and Groupama Entreprises go up and down completely randomly.
Pair Corralation between AXA World and Groupama Entreprises
Assuming the 90 days trading horizon AXA World Funds is expected to under-perform the Groupama Entreprises. In addition to that, AXA World is 65.28 times more volatile than Groupama Entreprises N. It trades about -0.03 of its total potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.96 per unit of volatility. 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 | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AXA World Funds vs. Groupama Entreprises N
Performance |
| Timeline |
| AXA World Funds |
| Groupama Entreprises |
AXA World and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA World and Groupama Entreprises
The main advantage of trading using opposite AXA World and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA World 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.| AXA World vs. Groupama Entreprises N | AXA World vs. Renaissance Europe C | AXA World vs. Superior Plus Corp | AXA World vs. Origin Agritech |
| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Xtrackers ShortDAX |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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