Correlation Between SBF 120 and Agrogeneration
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By analyzing existing cross correlation between SBF 120 and Agrogeneration, you can compare the effects of market volatilities on SBF 120 and Agrogeneration 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 Agrogeneration. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Agrogeneration.
Diversification Opportunities for SBF 120 and Agrogeneration
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBF and Agrogeneration is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Agrogeneration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrogeneration 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 Agrogeneration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrogeneration has no effect on the direction of SBF 120 i.e., SBF 120 and Agrogeneration go up and down completely randomly.
Pair Corralation between SBF 120 and Agrogeneration
Assuming the 90 days trading horizon SBF 120 is expected to generate 21.4 times less return on investment than Agrogeneration. But when comparing it to its historical volatility, SBF 120 is 9.43 times less risky than Agrogeneration. It trades about 0.13 of its potential returns per unit of risk. Agrogeneration is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 5.54 in Agrogeneration on November 28, 2024 and sell it today you would earn a total of 2.56 from holding Agrogeneration or generate 46.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Agrogeneration
Performance |
| Timeline |
SBF 120 and Agrogeneration Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Agrogeneration
Pair trading matchups for Agrogeneration
Pair Trading with SBF 120 and Agrogeneration
The main advantage of trading using opposite SBF 120 and Agrogeneration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Agrogeneration 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 Agrogeneration will offset losses from the drop in Agrogeneration's long position.| SBF 120 vs. CMG Cleantech SA | SBF 120 vs. Fiducial Office Solutions | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Jacquet Metal Service |
| Agrogeneration vs. Acheter Louer | Agrogeneration vs. Avenir Telecom SA | Agrogeneration vs. DBT SA | Agrogeneration vs. Europlasma 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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