Correlation Between Cboe UK and SoftBank Group
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By analyzing existing cross correlation between Cboe UK Consumer and SoftBank Group Corp, you can compare the effects of market volatilities on Cboe UK and SoftBank Group 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 Cboe UK with a short position of SoftBank Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and SoftBank Group.
Diversification Opportunities for Cboe UK and SoftBank Group
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cboe and SoftBank is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and SoftBank Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoftBank Group Corp and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with SoftBank Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoftBank Group Corp has no effect on the direction of Cboe UK i.e., Cboe UK and SoftBank Group go up and down completely randomly.
Pair Corralation between Cboe UK and SoftBank Group
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.46 times more return on investment than SoftBank Group. However, Cboe UK Consumer is 2.16 times less risky than SoftBank Group. It trades about 0.42 of its potential returns per unit of risk. SoftBank Group Corp is currently generating about -0.17 per unit of risk. If you would invest 2,958,388 in Cboe UK Consumer on August 28, 2024 and sell it today you would earn a total of 284,603 from holding Cboe UK Consumer or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Cboe UK Consumer vs. SoftBank Group Corp
Performance |
| Timeline |
Cboe UK and SoftBank Group Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
SoftBank Group Corp
Pair trading matchups for SoftBank Group
Pair Trading with Cboe UK and SoftBank Group
The main advantage of trading using opposite Cboe UK and SoftBank Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, SoftBank Group 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 SoftBank Group will offset losses from the drop in SoftBank Group's long position.| Cboe UK vs. Beazer Homes USA | Cboe UK vs. Kinnevik Investment AB | Cboe UK vs. Odyssean Investment Trust | Cboe UK vs. Primorus Investments plc |
| SoftBank Group vs. Toyota Motor Corp | SoftBank Group vs. OTP Bank Nyrt | SoftBank Group vs. Yum Brands | SoftBank Group vs. Cognizant Technology Solutions |
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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