Correlation Between Avenir Telecom and SBF 120
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By analyzing existing cross correlation between Avenir Telecom SA and SBF 120, you can compare the effects of market volatilities on Avenir Telecom and SBF 120 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 Avenir Telecom with a short position of SBF 120. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avenir Telecom and SBF 120.
Diversification Opportunities for Avenir Telecom and SBF 120
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avenir and SBF is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Avenir Telecom SA and SBF 120 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBF 120 and Avenir Telecom 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 Avenir Telecom SA are associated (or correlated) with SBF 120. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBF 120 has no effect on the direction of Avenir Telecom i.e., Avenir Telecom and SBF 120 go up and down completely randomly.
Pair Corralation between Avenir Telecom and SBF 120
Assuming the 90 days trading horizon Avenir Telecom SA is expected to under-perform the SBF 120. In addition to that, Avenir Telecom is 3.96 times more volatile than SBF 120. It trades about -0.29 of its total potential returns per unit of risk. SBF 120 is currently generating about 0.07 per unit of volatility. If you would invest 552,370 in SBF 120 on September 19, 2024 and sell it today you would earn a total of 5,234 from holding SBF 120 or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avenir Telecom SA vs. SBF 120
Performance |
| Timeline |
Avenir Telecom and SBF 120 Volatility Contrast
Predicted Return Density |
| Returns |
Avenir Telecom SA
Pair trading matchups for Avenir Telecom
SBF 120
Pair trading matchups for SBF 120
Pair Trading with Avenir Telecom and SBF 120
The main advantage of trading using opposite Avenir Telecom and SBF 120 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avenir Telecom position performs unexpectedly, SBF 120 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 SBF 120 will offset losses from the drop in SBF 120's long position.| Avenir Telecom vs. Acheter Louer | Avenir Telecom vs. Europlasma SA | Avenir Telecom vs. DBT SA | Avenir Telecom vs. Solocal Group SA |
| SBF 120 vs. CMG Cleantech SA | SBF 120 vs. Avenir Telecom SA | SBF 120 vs. Soditech SA | SBF 120 vs. Novatech Industries SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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