Correlation Between BARINGS EASTERN and Groupama Entreprises
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By analyzing existing cross correlation between BARINGS EASTERN EUROPE and Groupama Entreprises N, you can compare the effects of market volatilities on BARINGS EASTERN 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 EASTERN with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of BARINGS EASTERN and Groupama Entreprises.
Diversification Opportunities for BARINGS EASTERN and Groupama Entreprises
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BARINGS and Groupama is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BARINGS EASTERN EUROPE 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 EASTERN 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 EASTERN EUROPE 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 EASTERN i.e., BARINGS EASTERN and Groupama Entreprises go up and down completely randomly.
Pair Corralation between BARINGS EASTERN and Groupama Entreprises
Assuming the 90 days trading horizon BARINGS EASTERN EUROPE is expected to generate 65.14 times more return on investment than Groupama Entreprises. However, BARINGS EASTERN is 65.14 times more volatile than Groupama Entreprises N. It trades about 0.03 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.97 per unit of risk. If you would invest 3,761 in BARINGS EASTERN EUROPE on September 3, 2024 and sell it today you would earn a total of 170.00 from holding BARINGS EASTERN EUROPE or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.88% |
| Values | Daily Returns |
BARINGS EASTERN EUROPE vs. Groupama Entreprises N
Performance |
| Timeline |
| BARINGS EASTERN EUROPE |
| Groupama Entreprises |
BARINGS EASTERN and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BARINGS EASTERN and Groupama Entreprises
The main advantage of trading using opposite BARINGS EASTERN and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BARINGS EASTERN 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 EASTERN vs. BARINGS LATIN AMERICA | BARINGS EASTERN vs. Esfera Robotics R | BARINGS EASTERN vs. R co Valor F | BARINGS EASTERN vs. CM AM Monplus NE |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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