Correlation Between SBF 120 and Poujoulat
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By analyzing existing cross correlation between SBF 120 and Poujoulat SA, you can compare the effects of market volatilities on SBF 120 and Poujoulat 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 Poujoulat. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Poujoulat.
Diversification Opportunities for SBF 120 and Poujoulat
Weak diversification
The 3 months correlation between SBF and Poujoulat is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Poujoulat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poujoulat 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 Poujoulat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poujoulat SA has no effect on the direction of SBF 120 i.e., SBF 120 and Poujoulat go up and down completely randomly.
Pair Corralation between SBF 120 and Poujoulat
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.35 times more return on investment than Poujoulat. However, SBF 120 is 2.84 times less risky than Poujoulat. It trades about 0.02 of its potential returns per unit of risk. Poujoulat SA is currently generating about -0.05 per unit of risk. If you would invest 513,914 in SBF 120 on August 25, 2024 and sell it today you would earn a total of 36,245 from holding SBF 120 or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Poujoulat SA
Performance |
| Timeline |
SBF 120 and Poujoulat Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Poujoulat SA
Pair trading matchups for Poujoulat
Pair Trading with SBF 120 and Poujoulat
The main advantage of trading using opposite SBF 120 and Poujoulat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Poujoulat 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 Poujoulat will offset losses from the drop in Poujoulat's long position.| SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Soditech SA | SBF 120 vs. Entech SE SAS | SBF 120 vs. Covivio Hotels |
| Poujoulat vs. Moulinvest | Poujoulat vs. SA Catana Group | Poujoulat vs. Piscines Desjoyaux SA | Poujoulat vs. Thermador Groupe 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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