Correlation Between SBF 120 and Air France
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By analyzing existing cross correlation between SBF 120 and Air France KLM SA, you can compare the effects of market volatilities on SBF 120 and Air France 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 SBF 120 with a short position of Air France. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Air France.
Diversification Opportunities for SBF 120 and Air France
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBF and Air is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Air France KLM SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air France KLM and SBF 120 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 SBF 120 are associated (or correlated) with Air France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air France KLM has no effect on the direction of SBF 120 i.e., SBF 120 and Air France go up and down completely randomly.
Pair Corralation between SBF 120 and Air France
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.31 times more return on investment than Air France. However, SBF 120 is 3.28 times less risky than Air France. It trades about -0.08 of its potential returns per unit of risk. Air France KLM SA is currently generating about -0.3 per unit of risk. If you would invest 557,613 in SBF 120 on September 1, 2024 and sell it today you would lose (8,990) from holding SBF 120 or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SBF 120 vs. Air France KLM SA
Performance |
| Timeline |
SBF 120 and Air France Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Air France KLM SA
Pair trading matchups for Air France
Pair Trading with SBF 120 and Air France
The main advantage of trading using opposite SBF 120 and Air France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Air France 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 Air France will offset losses from the drop in Air France's long position.| SBF 120 vs. Jacquet Metal Service | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Hotelim Socit Anonyme | SBF 120 vs. Gaztransport Technigaz SAS |
| Air France vs. Manitou BF SA | Air France vs. Ossiam Minimum Variance | Air France vs. Granite 3x LVMH | Air France vs. 21Shares Polkadot ETP |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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