Correlation Between DAX Index and Groupama Entreprises
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By analyzing existing cross correlation between DAX Index and Groupama Entreprises N, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Groupama Entreprises.
Diversification Opportunities for DAX Index and Groupama Entreprises
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Groupama is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Groupama Entreprises go up and down completely randomly.
Pair Corralation between DAX Index and Groupama Entreprises
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Groupama Entreprises. In addition to that, DAX Index is 71.14 times more volatile than Groupama Entreprises N. It trades about -0.03 of its total potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.88 per unit of volatility. If you would invest 59,117 in Groupama Entreprises N on August 26, 2024 and sell it today you would earn a total of 137.00 from holding Groupama Entreprises N or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
DAX Index vs. Groupama Entreprises N
Performance |
| Timeline |
DAX Index and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Groupama Entreprises N
Pair trading matchups for Groupama Entreprises
Pair Trading with DAX Index and Groupama Entreprises
The main advantage of trading using opposite DAX Index and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Vishay Intertechnology | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. Casio Computer CoLtd | DAX Index vs. Amkor Technology |
| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Xtrackers ShortDAX |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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