Correlation Between SBF 120 and Reworld Media
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By analyzing existing cross correlation between SBF 120 and Reworld Media, you can compare the effects of market volatilities on SBF 120 and Reworld Media 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 Reworld Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Reworld Media.
Diversification Opportunities for SBF 120 and Reworld Media
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SBF and Reworld is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Reworld Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reworld Media 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 Reworld Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reworld Media has no effect on the direction of SBF 120 i.e., SBF 120 and Reworld Media go up and down completely randomly.
Pair Corralation between SBF 120 and Reworld Media
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.27 times more return on investment than Reworld Media. However, SBF 120 is 3.75 times less risky than Reworld Media. It trades about 0.0 of its potential returns per unit of risk. Reworld Media is currently generating about -0.08 per unit of risk. If you would invest 551,521 in SBF 120 on August 31, 2024 and sell it today you would lose (2,898) from holding SBF 120 or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
SBF 120 vs. Reworld Media
Performance |
| Timeline |
SBF 120 and Reworld Media Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Reworld Media
Pair trading matchups for Reworld Media
Pair Trading with SBF 120 and Reworld Media
The main advantage of trading using opposite SBF 120 and Reworld Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Reworld Media 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 Reworld Media will offset losses from the drop in Reworld Media'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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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