Correlation Between SBF 120 and Burelle SA
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By analyzing existing cross correlation between SBF 120 and Burelle SA, you can compare the effects of market volatilities on SBF 120 and Burelle 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 Burelle SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Burelle SA.
Diversification Opportunities for SBF 120 and Burelle SA
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBF and Burelle is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Burelle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burelle 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 Burelle SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burelle SA has no effect on the direction of SBF 120 i.e., SBF 120 and Burelle SA go up and down completely randomly.
Pair Corralation between SBF 120 and Burelle SA
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.45 times more return on investment than Burelle SA. However, SBF 120 is 2.21 times less risky than Burelle SA. It trades about -0.08 of its potential returns per unit of risk. Burelle SA is currently generating about -0.1 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Burelle SA
Performance |
| Timeline |
SBF 120 and Burelle SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Burelle SA
Pair trading matchups for Burelle SA
Pair Trading with SBF 120 and Burelle SA
The main advantage of trading using opposite SBF 120 and Burelle SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Burelle 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 Burelle SA will offset losses from the drop in Burelle 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 |
| Burelle SA vs. Compagnie Generale des | Burelle SA vs. Renault SA | Burelle SA vs. Atos SE | Burelle SA vs. Compagnie de Saint Gobain |
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 CEOs Directory module to screen CEOs from public companies around the world.
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