Correlation Between SBF 120 and Munic SA
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By analyzing existing cross correlation between SBF 120 and Munic SA, you can compare the effects of market volatilities on SBF 120 and Munic 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 Munic SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Munic SA.
Diversification Opportunities for SBF 120 and Munic SA
Excellent diversification
The 3 months correlation between SBF and Munic is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Munic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munic 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 Munic SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munic SA has no effect on the direction of SBF 120 i.e., SBF 120 and Munic SA go up and down completely randomly.
Pair Corralation between SBF 120 and Munic SA
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Munic SA. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 7.21 times less risky than Munic SA. The index trades about -0.02 of its potential returns per unit of risk. The Munic SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 85.00 in Munic SA on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Munic SA or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SBF 120 vs. Munic SA
Performance |
| Timeline |
SBF 120 and Munic SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Munic SA
Pair trading matchups for Munic SA
Pair Trading with SBF 120 and Munic SA
The main advantage of trading using opposite SBF 120 and Munic SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Munic 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 Munic SA will offset losses from the drop in Munic SA's long position.| SBF 120 vs. Credit Agricole SA | SBF 120 vs. Entech SE SAS | SBF 120 vs. Lexibook Linguistic Electronic | SBF 120 vs. Gaztransport Technigaz SAS |
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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