Correlation Between Bonhote Immobilier and SF Sustainable
Can any of the company-specific risk be diversified away by investing in both Bonhote Immobilier and SF Sustainable at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bonhote Immobilier and SF Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonhote Immobilier SICAV BIM and SF Sustainable Property, you can compare the effects of market volatilities on Bonhote Immobilier and SF Sustainable 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 Bonhote Immobilier with a short position of SF Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonhote Immobilier and SF Sustainable.
Diversification Opportunities for Bonhote Immobilier and SF Sustainable
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bonhote and SFPF is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bonhote Immobilier SICAV BIM and SF Sustainable Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SF Sustainable Property and Bonhote Immobilier 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 Bonhote Immobilier SICAV BIM are associated (or correlated) with SF Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SF Sustainable Property has no effect on the direction of Bonhote Immobilier i.e., Bonhote Immobilier and SF Sustainable go up and down completely randomly.
Pair Corralation between Bonhote Immobilier and SF Sustainable
Assuming the 90 days trading horizon Bonhote Immobilier SICAV BIM is expected to generate 0.97 times more return on investment than SF Sustainable. However, Bonhote Immobilier SICAV BIM is 1.03 times less risky than SF Sustainable. It trades about 0.06 of its potential returns per unit of risk. SF Sustainable Property is currently generating about 0.01 per unit of risk. If you would invest 12,285 in Bonhote Immobilier SICAV BIM on December 7, 2024 and sell it today you would earn a total of 3,735 from holding Bonhote Immobilier SICAV BIM or generate 30.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonhote Immobilier SICAV BIM vs. SF Sustainable Property
Performance |
| Timeline |
| Bonhote Immobilier |
| SF Sustainable Property |
Bonhote Immobilier and SF Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonhote Immobilier and SF Sustainable
The main advantage of trading using opposite Bonhote Immobilier and SF Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonhote Immobilier position performs unexpectedly, SF Sustainable 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 SF Sustainable will offset losses from the drop in SF Sustainable's long position.The idea behind Bonhote Immobilier SICAV BIM and SF Sustainable Property pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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