Correlation Between FF European and Groupama Entreprises
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By analyzing existing cross correlation between FF European and Groupama Entreprises N, you can compare the effects of market volatilities on FF European 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 FF European with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of FF European and Groupama Entreprises.
Diversification Opportunities for FF European and Groupama Entreprises
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FJ2B and Groupama is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding FF European and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises and FF European 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 FF European 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 FF European i.e., FF European and Groupama Entreprises go up and down completely randomly.
Pair Corralation between FF European and Groupama Entreprises
Assuming the 90 days trading horizon FF European is expected to generate 52.16 times more return on investment than Groupama Entreprises. However, FF European is 52.16 times more volatile than Groupama Entreprises N. It trades about 0.09 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.95 per unit of risk. If you would invest 1,779 in FF European on October 12, 2024 and sell it today you would earn a total of 226.00 from holding FF European or generate 12.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
FF European vs. Groupama Entreprises N
Performance |
Timeline |
FF European |
Groupama Entreprises |
FF European and Groupama Entreprises Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FF European and Groupama Entreprises
The main advantage of trading using opposite FF European and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FF European 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.FF European vs. Groupama Entreprises N | FF European vs. Renaissance Europe C | FF European vs. Superior Plus Corp | FF European vs. Origin Agritech |
Groupama Entreprises vs. Esfera Robotics R | Groupama Entreprises vs. R co Valor F | Groupama Entreprises vs. CM AM Monplus NE | Groupama Entreprises vs. IE00B0H4TS55 |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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