Correlation Between BEKA LUX and SISF BRIC
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By analyzing existing cross correlation between BEKA LUX SICAV and SISF BRIC AC, you can compare the effects of market volatilities on BEKA LUX and SISF BRIC 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 BEKA LUX with a short position of SISF BRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEKA LUX and SISF BRIC.
Diversification Opportunities for BEKA LUX and SISF BRIC
Very poor diversification
The 3 months correlation between BEKA and SISF is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BEKA LUX SICAV and SISF BRIC AC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SISF BRIC AC and BEKA LUX 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 BEKA LUX SICAV are associated (or correlated) with SISF BRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SISF BRIC AC has no effect on the direction of BEKA LUX i.e., BEKA LUX and SISF BRIC go up and down completely randomly.
Pair Corralation between BEKA LUX and SISF BRIC
Assuming the 90 days trading horizon BEKA LUX is expected to generate 3.3 times less return on investment than SISF BRIC. But when comparing it to its historical volatility, BEKA LUX SICAV is 6.22 times less risky than SISF BRIC. It trades about 0.11 of its potential returns per unit of risk. SISF BRIC AC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 19,549 in SISF BRIC AC on August 29, 2024 and sell it today you would earn a total of 1,927 from holding SISF BRIC AC or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.22% |
| Values | Daily Returns |
BEKA LUX SICAV vs. SISF BRIC AC
Performance |
| Timeline |
| BEKA LUX SICAV |
| SISF BRIC AC |
BEKA LUX and SISF BRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEKA LUX and SISF BRIC
The main advantage of trading using opposite BEKA LUX and SISF BRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEKA LUX position performs unexpectedly, SISF BRIC 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 SISF BRIC will offset losses from the drop in SISF BRIC's long position.| BEKA LUX vs. Groupama Entreprises N | BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. Superior Plus Corp | BEKA LUX vs. Origin Agritech |
| SISF BRIC vs. Renaissance Europe C | SISF BRIC vs. Superior Plus Corp | SISF BRIC vs. Origin Agritech | SISF BRIC vs. Identiv |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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