Correlation Between SBF 120 and Bains Mer
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By analyzing existing cross correlation between SBF 120 and Bains Mer Monaco, you can compare the effects of market volatilities on SBF 120 and Bains Mer 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 Bains Mer. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Bains Mer.
Diversification Opportunities for SBF 120 and Bains Mer
Very weak diversification
The 3 months correlation between SBF and Bains is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Bains Mer Monaco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bains Mer Monaco 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 Bains Mer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bains Mer Monaco has no effect on the direction of SBF 120 i.e., SBF 120 and Bains Mer go up and down completely randomly.
Pair Corralation between SBF 120 and Bains Mer
Assuming the 90 days trading horizon SBF 120 is expected to generate 2.18 times less return on investment than Bains Mer. But when comparing it to its historical volatility, SBF 120 is 1.9 times less risky than Bains Mer. It trades about 0.01 of its potential returns per unit of risk. Bains Mer Monaco is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 10,386 in Bains Mer Monaco on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Bains Mer Monaco or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
SBF 120 vs. Bains Mer Monaco
Performance |
| Timeline |
SBF 120 and Bains Mer Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Bains Mer Monaco
Pair trading matchups for Bains Mer
Pair Trading with SBF 120 and Bains Mer
The main advantage of trading using opposite SBF 120 and Bains Mer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Bains Mer 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 Bains Mer will offset losses from the drop in Bains Mer's long position.| SBF 120 vs. Jacquet Metal Service | SBF 120 vs. Metalliance SA | SBF 120 vs. Fiducial Office Solutions | SBF 120 vs. Kaufman Et Broad |
| Bains Mer vs. Compagnie des Alpes | Bains Mer vs. Groupe Partouche SA | Bains Mer vs. Bnteau SA | Bains Mer vs. Boiron 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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