Correlation Between SBF 120 and Altheora
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By analyzing existing cross correlation between SBF 120 and Altheora SA, you can compare the effects of market volatilities on SBF 120 and Altheora 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 Altheora. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Altheora.
Diversification Opportunities for SBF 120 and Altheora
Very weak diversification
The 3 months correlation between SBF and Altheora is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Altheora SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altheora 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 Altheora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altheora SA has no effect on the direction of SBF 120 i.e., SBF 120 and Altheora go up and down completely randomly.
Pair Corralation between SBF 120 and Altheora
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.21 times more return on investment than Altheora. However, SBF 120 is 4.83 times less risky than Altheora. It trades about -0.08 of its potential returns per unit of risk. Altheora SA is currently generating about -0.04 per unit of risk. If you would invest 611,262 in SBF 120 on August 26, 2024 and sell it today you would lose (61,103) from holding SBF 120 or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Altheora SA
Performance |
| Timeline |
SBF 120 and Altheora Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Altheora SA
Pair trading matchups for Altheora
Pair Trading with SBF 120 and Altheora
The main advantage of trading using opposite SBF 120 and Altheora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Altheora 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 Altheora will offset losses from the drop in Altheora's long position.| SBF 120 vs. Soditech SA | SBF 120 vs. Jacquet Metal Service | SBF 120 vs. Guandao Puer Investment | SBF 120 vs. Metalliance SA |
| Altheora vs. Exail Technologies SA | Altheora vs. Linedata Services SA | Altheora vs. ZCCM Investments Holdings | Altheora vs. Metalliance 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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