Correlation Between SBF 120 and Les Hotels
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By analyzing existing cross correlation between SBF 120 and Les Hotels Bav, you can compare the effects of market volatilities on SBF 120 and Les Hotels 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 Les Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Les Hotels.
Diversification Opportunities for SBF 120 and Les Hotels
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SBF and Les is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Les Hotels Bav in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Les Hotels Bav 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 Les Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Les Hotels Bav has no effect on the direction of SBF 120 i.e., SBF 120 and Les Hotels go up and down completely randomly.
Pair Corralation between SBF 120 and Les Hotels
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Les Hotels. In addition to that, SBF 120 is 1.97 times more volatile than Les Hotels Bav. It trades about -0.23 of its total potential returns per unit of risk. Les Hotels Bav is currently generating about -0.07 per unit of volatility. If you would invest 7,250 in Les Hotels Bav on August 29, 2024 and sell it today you would lose (50.00) from holding Les Hotels Bav or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Les Hotels Bav
Performance |
| Timeline |
SBF 120 and Les Hotels Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Les Hotels Bav
Pair trading matchups for Les Hotels
Pair Trading with SBF 120 and Les Hotels
The main advantage of trading using opposite SBF 120 and Les Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Les Hotels 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 Les Hotels will offset losses from the drop in Les Hotels' long position.| SBF 120 vs. Linedata Services SA | SBF 120 vs. Mauna Kea Technologies | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. ZCCM Investments Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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