Correlation Between BNY Mellon and Groupama Entreprises
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By analyzing existing cross correlation between BNY Mellon Global and Groupama Entreprises N, you can compare the effects of market volatilities on BNY Mellon 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 BNY Mellon with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNY Mellon and Groupama Entreprises.
Diversification Opportunities for BNY Mellon and Groupama Entreprises
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BNY and Groupama is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BNY Mellon Global and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises and BNY Mellon 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 BNY Mellon Global 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 BNY Mellon i.e., BNY Mellon and Groupama Entreprises go up and down completely randomly.
Pair Corralation between BNY Mellon and Groupama Entreprises
Assuming the 90 days trading horizon BNY Mellon Global is expected to generate 31.83 times more return on investment than Groupama Entreprises. However, BNY Mellon is 31.83 times more volatile than Groupama Entreprises N. It trades about 0.22 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.93 per unit of risk. If you would invest 164.00 in BNY Mellon Global on September 13, 2024 and sell it today you would earn a total of 3.00 from holding BNY Mellon Global or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNY Mellon Global vs. Groupama Entreprises N
Performance |
| Timeline |
| BNY Mellon Global |
| Groupama Entreprises |
BNY Mellon and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNY Mellon and Groupama Entreprises
The main advantage of trading using opposite BNY Mellon and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNY Mellon 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.| BNY Mellon vs. Groupama Entreprises N | BNY Mellon vs. Renaissance Europe C | BNY Mellon vs. Superior Plus Corp | BNY Mellon 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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