Correlation Between SBF 120 and Sogeclair
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By analyzing existing cross correlation between SBF 120 and Sogeclair SA, you can compare the effects of market volatilities on SBF 120 and Sogeclair 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 Sogeclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Sogeclair.
Diversification Opportunities for SBF 120 and Sogeclair
Weak diversification
The 3 months correlation between SBF and Sogeclair is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Sogeclair SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogeclair 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 Sogeclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogeclair SA has no effect on the direction of SBF 120 i.e., SBF 120 and Sogeclair go up and down completely randomly.
Pair Corralation between SBF 120 and Sogeclair
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Sogeclair. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 1.73 times less risky than Sogeclair. The index trades about -0.2 of its potential returns per unit of risk. The Sogeclair SA is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,700 in Sogeclair SA on August 28, 2024 and sell it today you would earn a total of 130.00 from holding Sogeclair SA or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Sogeclair SA
Performance |
| Timeline |
SBF 120 and Sogeclair Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Sogeclair SA
Pair trading matchups for Sogeclair
Pair Trading with SBF 120 and Sogeclair
The main advantage of trading using opposite SBF 120 and Sogeclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Sogeclair 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 Sogeclair will offset losses from the drop in Sogeclair's long position.| SBF 120 vs. ZCCM Investments Holdings | SBF 120 vs. Les Hotels Bav | SBF 120 vs. X Fab Silicon | SBF 120 vs. CMG Cleantech SA |
| Sogeclair vs. Metalliance SA | Sogeclair vs. CMG Cleantech SA | Sogeclair vs. Technip Energies BV | Sogeclair vs. Groupe Pizzorno Environnement |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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