Correlation Between FF Global and Groupama Entreprises
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By analyzing existing cross correlation between FF Global and Groupama Entreprises N, you can compare the effects of market volatilities on FF Global 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 Global with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of FF Global and Groupama Entreprises.
Diversification Opportunities for FF Global and Groupama Entreprises
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FJ2P and Groupama is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding FF 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 FF Global 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 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 FF Global i.e., FF Global and Groupama Entreprises go up and down completely randomly.
Pair Corralation between FF Global and Groupama Entreprises
Assuming the 90 days trading horizon FF Global is expected to generate 86.62 times more return on investment than Groupama Entreprises. However, FF Global is 86.62 times more volatile than Groupama Entreprises N. It trades about 0.11 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.98 per unit of risk. If you would invest 6,562 in FF Global on November 2, 2024 and sell it today you would earn a total of 840.00 from holding FF Global or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.06% |
| Values | Daily Returns |
FF Global vs. Groupama Entreprises N
Performance |
| Timeline |
| FF Global |
| Groupama Entreprises |
FF Global and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FF Global and Groupama Entreprises
The main advantage of trading using opposite FF Global and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FF Global 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 Global vs. Groupama Entreprises N | FF Global vs. Renaissance Europe C | FF Global vs. Superior Plus Corp | FF Global vs. Origin Agritech |
| Groupama Entreprises vs. BGF Euro Markets | Groupama Entreprises vs. Swedbank Robur Corporate | Groupama Entreprises vs. Caixabank Seleccin Tendencias | Groupama Entreprises vs. JPMIF Bond Fund |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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