Correlation Between BARINGS DEVELOPED and Groupama Entreprises
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By analyzing existing cross correlation between BARINGS DEVELOPED AND and Groupama Entreprises N, you can compare the effects of market volatilities on BARINGS DEVELOPED 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 BARINGS DEVELOPED with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of BARINGS DEVELOPED and Groupama Entreprises.
Diversification Opportunities for BARINGS DEVELOPED and Groupama Entreprises
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BARINGS and Groupama is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding BARINGS DEVELOPED AND and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises and BARINGS DEVELOPED 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 BARINGS DEVELOPED AND 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 BARINGS DEVELOPED i.e., BARINGS DEVELOPED and Groupama Entreprises go up and down completely randomly.
Pair Corralation between BARINGS DEVELOPED and Groupama Entreprises
Assuming the 90 days trading horizon BARINGS DEVELOPED AND is expected to generate 32.83 times more return on investment than Groupama Entreprises. However, BARINGS DEVELOPED is 32.83 times more volatile than Groupama Entreprises N. It trades about 0.07 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.96 per unit of risk. If you would invest 691.00 in BARINGS DEVELOPED AND on September 3, 2024 and sell it today you would earn a total of 40.00 from holding BARINGS DEVELOPED AND or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.82% |
| Values | Daily Returns |
BARINGS DEVELOPED AND vs. Groupama Entreprises N
Performance |
| Timeline |
| BARINGS DEVELOPED AND |
| Groupama Entreprises |
BARINGS DEVELOPED and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BARINGS DEVELOPED and Groupama Entreprises
The main advantage of trading using opposite BARINGS DEVELOPED and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BARINGS DEVELOPED 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.| BARINGS DEVELOPED vs. Groupama Entreprises N | BARINGS DEVELOPED vs. Renaissance Europe C | BARINGS DEVELOPED vs. Superior Plus Corp | BARINGS DEVELOPED vs. Origin Agritech |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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