Correlation Between JPM America and Groupama Entreprises
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By analyzing existing cross correlation between JPM America Equity and Groupama Entreprises N, you can compare the effects of market volatilities on JPM America 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 JPM America with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM America and Groupama Entreprises.
Diversification Opportunities for JPM America and Groupama Entreprises
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPM and Groupama is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding JPM America Equity and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises and JPM America 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 JPM America Equity 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 JPM America i.e., JPM America and Groupama Entreprises go up and down completely randomly.
Pair Corralation between JPM America and Groupama Entreprises
Assuming the 90 days trading horizon JPM America Equity is expected to generate 87.87 times more return on investment than Groupama Entreprises. However, JPM America is 87.87 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 0.99 per unit of risk. If you would invest 37,084 in JPM America Equity on September 1, 2024 and sell it today you would earn a total of 6,631 from holding JPM America Equity or generate 17.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.23% |
| Values | Daily Returns |
JPM America Equity vs. Groupama Entreprises N
Performance |
| Timeline |
| JPM America Equity |
| Groupama Entreprises |
JPM America and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPM America and Groupama Entreprises
The main advantage of trading using opposite JPM America and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM America 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.| JPM America vs. Groupama Entreprises N | JPM America vs. Renaissance Europe C | JPM America vs. Superior Plus Corp | JPM America vs. Origin Agritech |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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