Correlation Between SBF 120 and Vergnet
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By analyzing existing cross correlation between SBF 120 and Vergnet, you can compare the effects of market volatilities on SBF 120 and Vergnet 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 Vergnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Vergnet.
Diversification Opportunities for SBF 120 and Vergnet
Very weak diversification
The 3 months correlation between SBF and Vergnet is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Vergnet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vergnet 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 Vergnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vergnet has no effect on the direction of SBF 120 i.e., SBF 120 and Vergnet go up and down completely randomly.
Pair Corralation between SBF 120 and Vergnet
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.04 times more return on investment than Vergnet. However, SBF 120 is 25.07 times less risky than Vergnet. It trades about 0.02 of its potential returns per unit of risk. Vergnet is currently generating about -0.09 per unit of risk. If you would invest 513,914 in SBF 120 on August 24, 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 | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Vergnet
Performance |
| Timeline |
SBF 120 and Vergnet Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Vergnet
Pair trading matchups for Vergnet
Pair Trading with SBF 120 and Vergnet
The main advantage of trading using opposite SBF 120 and Vergnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Vergnet 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 Vergnet will offset losses from the drop in Vergnet's long position.| SBF 120 vs. Mauna Kea Technologies | SBF 120 vs. Axway Software | SBF 120 vs. Soditech SA | SBF 120 vs. Guandao Puer Investment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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