Correlation Between SBF 120 and Kalray SA
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By analyzing existing cross correlation between SBF 120 and Kalray SA, you can compare the effects of market volatilities on SBF 120 and Kalray SA 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 Kalray SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Kalray SA.
Diversification Opportunities for SBF 120 and Kalray SA
Weak diversification
The 3 months correlation between SBF and Kalray is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Kalray SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalray 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 Kalray SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalray SA has no effect on the direction of SBF 120 i.e., SBF 120 and Kalray SA go up and down completely randomly.
Pair Corralation between SBF 120 and Kalray SA
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Kalray SA. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 28.83 times less risky than Kalray SA. The index trades about -0.21 of its potential returns per unit of risk. The Kalray SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 121.00 in Kalray SA on August 30, 2024 and sell it today you would earn a total of 95.00 from holding Kalray SA or generate 78.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Kalray SA
Performance |
| Timeline |
SBF 120 and Kalray SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Kalray SA
Pair trading matchups for Kalray SA
Pair Trading with SBF 120 and Kalray SA
The main advantage of trading using opposite SBF 120 and Kalray SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Kalray SA 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 Kalray SA will offset losses from the drop in Kalray SA's 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 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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