Correlation Between SBF 120 and Fountaine Pajo
Specify exactly 2 symbols:
By analyzing existing cross correlation between SBF 120 and Fountaine Pajo, you can compare the effects of market volatilities on SBF 120 and Fountaine Pajo 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 Fountaine Pajo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Fountaine Pajo.
Diversification Opportunities for SBF 120 and Fountaine Pajo
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SBF and Fountaine is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Fountaine Pajo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fountaine Pajo 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 Fountaine Pajo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fountaine Pajo has no effect on the direction of SBF 120 i.e., SBF 120 and Fountaine Pajo go up and down completely randomly.
Pair Corralation between SBF 120 and Fountaine Pajo
Assuming the 90 days trading horizon SBF 120 is expected to generate 1.0 times more return on investment than Fountaine Pajo. However, SBF 120 is 1.0 times more volatile than Fountaine Pajo. It trades about -0.08 of its potential returns per unit of risk. Fountaine Pajo is currently generating about -0.41 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Fountaine Pajo
Performance |
| Timeline |
SBF 120 and Fountaine Pajo Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Fountaine Pajo
Pair trading matchups for Fountaine Pajo
Pair Trading with SBF 120 and Fountaine Pajo
The main advantage of trading using opposite SBF 120 and Fountaine Pajo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Fountaine Pajo 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 Fountaine Pajo will offset losses from the drop in Fountaine Pajo'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 |
| Fountaine Pajo vs. Vente Unique | Fountaine Pajo vs. Groupe Sfpi | Fountaine Pajo vs. Cegedim SA | Fountaine Pajo vs. SA Catana Group |
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.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |