Correlation Between SBF 120 and Sidetrade
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By analyzing existing cross correlation between SBF 120 and Sidetrade, you can compare the effects of market volatilities on SBF 120 and Sidetrade 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 Sidetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Sidetrade.
Diversification Opportunities for SBF 120 and Sidetrade
Good diversification
The 3 months correlation between SBF and Sidetrade is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Sidetrade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidetrade 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 Sidetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidetrade has no effect on the direction of SBF 120 i.e., SBF 120 and Sidetrade go up and down completely randomly.
Pair Corralation between SBF 120 and Sidetrade
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Sidetrade. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 1.65 times less risky than Sidetrade. The index trades about -0.2 of its potential returns per unit of risk. The Sidetrade is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 22,400 in Sidetrade on August 28, 2024 and sell it today you would earn a total of 300.00 from holding Sidetrade or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Sidetrade
Performance |
| Timeline |
SBF 120 and Sidetrade Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Sidetrade
Pair trading matchups for Sidetrade
Pair Trading with SBF 120 and Sidetrade
The main advantage of trading using opposite SBF 120 and Sidetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Sidetrade 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 Sidetrade will offset losses from the drop in Sidetrade's long position.| SBF 120 vs. X Fab Silicon | SBF 120 vs. Axway Software | SBF 120 vs. Covivio Hotels | SBF 120 vs. Novatech Industries SA |
| Sidetrade vs. Sartorius Stedim Biotech | Sidetrade vs. Lectra SA | Sidetrade vs. Teleperformance SE | Sidetrade vs. Trigano 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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