Correlation Between SBF 120 and Hitechpros
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By analyzing existing cross correlation between SBF 120 and Hitechpros, you can compare the effects of market volatilities on SBF 120 and Hitechpros 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 Hitechpros. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Hitechpros.
Diversification Opportunities for SBF 120 and Hitechpros
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBF and Hitechpros is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Hitechpros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitechpros 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 Hitechpros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitechpros has no effect on the direction of SBF 120 i.e., SBF 120 and Hitechpros go up and down completely randomly.
Pair Corralation between SBF 120 and Hitechpros
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Hitechpros. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 1.98 times less risky than Hitechpros. The index trades about -0.21 of its potential returns per unit of risk. The Hitechpros is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,630 in Hitechpros on August 30, 2024 and sell it today you would lose (50.00) from holding Hitechpros or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Hitechpros
Performance |
| Timeline |
SBF 120 and Hitechpros Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Hitechpros
Pair trading matchups for Hitechpros
Pair Trading with SBF 120 and Hitechpros
The main advantage of trading using opposite SBF 120 and Hitechpros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Hitechpros 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 Hitechpros will offset losses from the drop in Hitechpros' long position.| SBF 120 vs. Novatech Industries SA | SBF 120 vs. FNP Technologies SA | SBF 120 vs. Impulse Fitness Solutions | SBF 120 vs. Union Technologies Informatique |
| Hitechpros vs. Aubay Socit Anonyme | Hitechpros vs. Infotel SA | Hitechpros vs. IT Link | Hitechpros vs. Manitou BF 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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