Correlation Between SBF 120 and Txcom SA
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By analyzing existing cross correlation between SBF 120 and Txcom SA, you can compare the effects of market volatilities on SBF 120 and Txcom 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 Txcom SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Txcom SA.
Diversification Opportunities for SBF 120 and Txcom SA
Very good diversification
The 3 months correlation between SBF and Txcom is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Txcom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Txcom 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 Txcom SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Txcom SA has no effect on the direction of SBF 120 i.e., SBF 120 and Txcom SA go up and down completely randomly.
Pair Corralation between SBF 120 and Txcom SA
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.52 times more return on investment than Txcom SA. However, SBF 120 is 1.91 times less risky than Txcom SA. It trades about -0.08 of its potential returns per unit of risk. Txcom SA is currently generating about -0.05 per unit of risk. If you would invest 607,322 in SBF 120 on September 1, 2024 and sell it today you would lose (58,699) from holding SBF 120 or give up 9.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Txcom SA
Performance |
| Timeline |
SBF 120 and Txcom SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Txcom SA
Pair trading matchups for Txcom SA
Pair Trading with SBF 120 and Txcom SA
The main advantage of trading using opposite SBF 120 and Txcom SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Txcom 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 Txcom SA will offset losses from the drop in Txcom SA's long position.| SBF 120 vs. Jacquet Metal Service | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Hotelim Socit Anonyme | SBF 120 vs. Gaztransport Technigaz SAS |
| Txcom SA vs. Eurobio Scientific SA | Txcom SA vs. Riber SA | Txcom SA vs. Manitou BF SA | Txcom SA vs. Ossiam Minimum Variance |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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