Correlation Between SBF 120 and Coil SANV
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By analyzing existing cross correlation between SBF 120 and Coil SANV, you can compare the effects of market volatilities on SBF 120 and Coil SANV 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 Coil SANV. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Coil SANV.
Diversification Opportunities for SBF 120 and Coil SANV
Poor diversification
The 3 months correlation between SBF and Coil is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Coil SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coil SANV 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 Coil SANV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coil SANV has no effect on the direction of SBF 120 i.e., SBF 120 and Coil SANV go up and down completely randomly.
Pair Corralation between SBF 120 and Coil SANV
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.34 times more return on investment than Coil SANV. However, SBF 120 is 2.93 times less risky than Coil SANV. It trades about 0.02 of its potential returns per unit of risk. Coil SANV is currently generating about -0.05 per unit of risk. If you would invest 509,924 in SBF 120 on September 2, 2024 and sell it today you would earn a total of 38,699 from holding SBF 120 or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Coil SANV
Performance |
| Timeline |
SBF 120 and Coil SANV Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Coil SANV
Pair trading matchups for Coil SANV
Pair Trading with SBF 120 and Coil SANV
The main advantage of trading using opposite SBF 120 and Coil SANV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Coil SANV 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 Coil SANV will offset losses from the drop in Coil SANV's long position.| SBF 120 vs. Hotelim Socit Anonyme | SBF 120 vs. Hoteles Bestprice SA | SBF 120 vs. Axway Software | SBF 120 vs. Mauna Kea Technologies |
| Coil SANV vs. Voltalia SA | Coil SANV vs. Ecoslops SA | Coil SANV vs. Agripower France Sa | Coil SANV vs. Enertime SAS |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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