Correlation Between SBF 120 and Netmedia Group
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By analyzing existing cross correlation between SBF 120 and Netmedia Group SA, you can compare the effects of market volatilities on SBF 120 and Netmedia Group 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 Netmedia Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Netmedia Group.
Diversification Opportunities for SBF 120 and Netmedia Group
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SBF and Netmedia is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Netmedia Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netmedia Group 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 Netmedia Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netmedia Group SA has no effect on the direction of SBF 120 i.e., SBF 120 and Netmedia Group go up and down completely randomly.
Pair Corralation between SBF 120 and Netmedia Group
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.15 times more return on investment than Netmedia Group. However, SBF 120 is 6.48 times less risky than Netmedia Group. It trades about -0.01 of its potential returns per unit of risk. Netmedia Group SA is currently generating about -0.07 per unit of risk. If you would invest 562,745 in SBF 120 on September 2, 2024 and sell it today you would lose (14,122) from holding SBF 120 or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SBF 120 vs. Netmedia Group SA
Performance |
| Timeline |
SBF 120 and Netmedia Group Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Netmedia Group SA
Pair trading matchups for Netmedia Group
Pair Trading with SBF 120 and Netmedia Group
The main advantage of trading using opposite SBF 120 and Netmedia Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Netmedia Group 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 Netmedia Group will offset losses from the drop in Netmedia Group's long position.| SBF 120 vs. Hotelim Socit Anonyme | SBF 120 vs. Hoteles Bestprice SA | SBF 120 vs. Axway Software | SBF 120 vs. Mauna Kea Technologies |
| Netmedia Group vs. Onlineformapro SA | Netmedia Group vs. Eutelsat Communications SA | Netmedia Group vs. Affluent Medical SAS | Netmedia Group vs. Mauna Kea Technologies |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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