Correlation Between SBF 120 and Cnova NV
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By analyzing existing cross correlation between SBF 120 and Cnova NV, you can compare the effects of market volatilities on SBF 120 and Cnova NV 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 Cnova NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Cnova NV.
Diversification Opportunities for SBF 120 and Cnova NV
Poor diversification
The 3 months correlation between SBF and Cnova is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Cnova NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnova NV 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 Cnova NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnova NV has no effect on the direction of SBF 120 i.e., SBF 120 and Cnova NV go up and down completely randomly.
Pair Corralation between SBF 120 and Cnova NV
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Cnova NV. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 17.43 times less risky than Cnova NV. The index trades about -0.08 of its potential returns per unit of risk. The Cnova NV is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 226.00 in Cnova NV on September 1, 2024 and sell it today you would lose (146.00) from holding Cnova NV or give up 64.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.24% |
| Values | Daily Returns |
SBF 120 vs. Cnova NV
Performance |
| Timeline |
SBF 120 and Cnova NV Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Cnova NV
Pair trading matchups for Cnova NV
Pair Trading with SBF 120 and Cnova NV
The main advantage of trading using opposite SBF 120 and Cnova NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Cnova NV 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 Cnova NV will offset losses from the drop in Cnova NV'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 |
| Cnova NV vs. Casino Guichard Perrachon | Cnova NV vs. Rallye SA | Cnova NV vs. Carmila SA | Cnova NV vs. Burelle 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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