Correlation Between SBF 120 and Adomos SA
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By analyzing existing cross correlation between SBF 120 and Adomos SA, you can compare the effects of market volatilities on SBF 120 and Adomos SA 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 Adomos SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Adomos SA.
Diversification Opportunities for SBF 120 and Adomos SA
Modest diversification
The 3 months correlation between SBF and Adomos is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Adomos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adomos SA 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 Adomos SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adomos SA has no effect on the direction of SBF 120 i.e., SBF 120 and Adomos SA go up and down completely randomly.
Pair Corralation between SBF 120 and Adomos SA
If you would invest 0.02 in Adomos SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Adomos SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SBF 120 vs. Adomos SA
Performance |
| Timeline |
SBF 120 and Adomos SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Adomos SA
Pair trading matchups for Adomos SA
Pair Trading with SBF 120 and Adomos SA
The main advantage of trading using opposite SBF 120 and Adomos SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Adomos SA 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 Adomos SA will offset losses from the drop in Adomos SA's long position.| SBF 120 vs. Novatech Industries SA | SBF 120 vs. FNP Technologies SA | SBF 120 vs. Impulse Fitness Solutions | SBF 120 vs. Union Technologies Informatique |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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