Correlation Between SBF 120 and Alstom SA
Specify exactly 2 symbols:
By analyzing existing cross correlation between SBF 120 and Alstom SA, you can compare the effects of market volatilities on SBF 120 and Alstom 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 Alstom SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Alstom SA.
Diversification Opportunities for SBF 120 and Alstom SA
Very good diversification
The 3 months correlation between SBF and Alstom is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Alstom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alstom 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 Alstom SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alstom SA has no effect on the direction of SBF 120 i.e., SBF 120 and Alstom SA go up and down completely randomly.
Pair Corralation between SBF 120 and Alstom SA
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Alstom SA. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 3.58 times less risky than Alstom SA. The index trades about -0.16 of its potential returns per unit of risk. The Alstom SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,010 in Alstom SA on August 31, 2024 and sell it today you would earn a total of 84.00 from holding Alstom SA or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SBF 120 vs. Alstom SA
Performance |
| Timeline |
SBF 120 and Alstom SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Alstom SA
Pair trading matchups for Alstom SA
Pair Trading with SBF 120 and Alstom SA
The main advantage of trading using opposite SBF 120 and Alstom SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Alstom 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 Alstom SA will offset losses from the drop in Alstom SA's long position.| SBF 120 vs. Lexibook Linguistic Electronic | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Soditech SA | SBF 120 vs. Fill Up Media |
| Alstom SA vs. Bouygues SA | Alstom SA vs. Compagnie de Saint Gobain | Alstom SA vs. Veolia Environnement VE | Alstom SA vs. Vinci 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |