Correlation Between SBF 120 and Glob Bioenergi
Specify exactly 2 symbols:
By analyzing existing cross correlation between SBF 120 and Glob Bioenergi, you can compare the effects of market volatilities on SBF 120 and Glob Bioenergi 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 Glob Bioenergi. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Glob Bioenergi.
Diversification Opportunities for SBF 120 and Glob Bioenergi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBF and Glob is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Glob Bioenergi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glob Bioenergi 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 Glob Bioenergi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glob Bioenergi has no effect on the direction of SBF 120 i.e., SBF 120 and Glob Bioenergi go up and down completely randomly.
Pair Corralation between SBF 120 and Glob Bioenergi
Assuming the 90 days trading horizon SBF 120 is expected to generate 1.73 times less return on investment than Glob Bioenergi. But when comparing it to its historical volatility, SBF 120 is 7.27 times less risky than Glob Bioenergi. It trades about 0.03 of its potential returns per unit of risk. Glob Bioenergi is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Glob Bioenergi on November 19, 2024 and sell it today you would lose (127.00) from holding Glob Bioenergi or give up 47.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Glob Bioenergi
Performance |
| Timeline |
SBF 120 and Glob Bioenergi Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Glob Bioenergi
Pair trading matchups for Glob Bioenergi
Pair Trading with SBF 120 and Glob Bioenergi
The main advantage of trading using opposite SBF 120 and Glob Bioenergi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Glob Bioenergi 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 Glob Bioenergi will offset losses from the drop in Glob Bioenergi's long position.| SBF 120 vs. Entech SE SAS | SBF 120 vs. Odyssee Technologies SA | SBF 120 vs. Sidetrade | SBF 120 vs. Boiron 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |