Correlation Between Union Technologies and SBF 120
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By analyzing existing cross correlation between Union Technologies Informatique and SBF 120, you can compare the effects of market volatilities on Union Technologies 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 Union Technologies with a short position of SBF 120. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Technologies and SBF 120.
Diversification Opportunities for Union Technologies and SBF 120
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Union and SBF is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Union Technologies Informatiqu and SBF 120 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBF 120 and Union Technologies 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 Union Technologies Informatique 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 Union Technologies i.e., Union Technologies and SBF 120 go up and down completely randomly.
Pair Corralation between Union Technologies and SBF 120
Assuming the 90 days trading horizon Union Technologies Informatique is expected to generate 13.04 times more return on investment than SBF 120. However, Union Technologies is 13.04 times more volatile than SBF 120. It trades about 0.16 of its potential returns per unit of risk. SBF 120 is currently generating about 0.38 per unit of risk. If you would invest 20.00 in Union Technologies Informatique on November 3, 2024 and sell it today you would earn a total of 6.00 from holding Union Technologies Informatique or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Technologies Informatiqu vs. SBF 120
Performance |
| Timeline |
Union Technologies and SBF 120 Volatility Contrast
Predicted Return Density |
| Returns |
Union Technologies Informatique
Pair trading matchups for Union Technologies
SBF 120
Pair trading matchups for SBF 120
Pair Trading with Union Technologies and SBF 120
The main advantage of trading using opposite Union Technologies and SBF 120 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Technologies 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.| Union Technologies vs. ACTEOS SA | Union Technologies vs. Memscap Regpt | Union Technologies vs. Linedata Services SA | Union Technologies vs. Lectra SA |
| SBF 120 vs. ZCCM Investments Holdings | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Exail Technologies SA | SBF 120 vs. Soditech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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