Correlation Between SBF 120 and HF Company
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By analyzing existing cross correlation between SBF 120 and HF Company SA, you can compare the effects of market volatilities on SBF 120 and HF Company 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 HF Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and HF Company.
Diversification Opportunities for SBF 120 and HF Company
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SBF and ALHF is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and HF Company SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF Company SA 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 HF Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF Company SA has no effect on the direction of SBF 120 i.e., SBF 120 and HF Company go up and down completely randomly.
Pair Corralation between SBF 120 and HF Company
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.6 times more return on investment than HF Company. However, SBF 120 is 1.65 times less risky than HF Company. It trades about -0.01 of its potential returns per unit of risk. HF Company SA is currently generating about -0.01 per unit of risk. If you would invest 575,388 in SBF 120 on September 20, 2024 and sell it today you would lose (16,304) from holding SBF 120 or give up 2.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
SBF 120 vs. HF Company SA
Performance |
| Timeline |
SBF 120 and HF Company Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
HF Company SA
Pair trading matchups for HF Company
Pair Trading with SBF 120 and HF Company
The main advantage of trading using opposite SBF 120 and HF Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, HF Company 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 HF Company will offset losses from the drop in HF Company's long position.| SBF 120 vs. Gaztransport Technigaz SAS | SBF 120 vs. Pullup Entertainment Socit | SBF 120 vs. Reworld Media | SBF 120 vs. Air France KLM SA |
| HF Company vs. Broadpeak SA | HF Company vs. Impulse Fitness Solutions | HF Company vs. Axway Software | HF Company vs. Eutelsat Communications 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 Stocks Directory module to find actively traded stocks across global markets.
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