Correlation Between SBF 120 and ST Dupont
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By analyzing existing cross correlation between SBF 120 and ST Dupont, you can compare the effects of market volatilities on SBF 120 and ST Dupont 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 ST Dupont. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and ST Dupont.
Diversification Opportunities for SBF 120 and ST Dupont
Excellent diversification
The 3 months correlation between SBF and DPT is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and ST Dupont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ST Dupont 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 ST Dupont. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ST Dupont has no effect on the direction of SBF 120 i.e., SBF 120 and ST Dupont go up and down completely randomly.
Pair Corralation between SBF 120 and ST Dupont
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the ST Dupont. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 2.24 times less risky than ST Dupont. The index trades about -0.08 of its potential returns per unit of risk. The ST Dupont is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5.84 in ST Dupont on September 3, 2024 and sell it today you would earn a total of 2.12 from holding ST Dupont or generate 36.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. ST Dupont
Performance |
| Timeline |
SBF 120 and ST Dupont Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
ST Dupont
Pair trading matchups for ST Dupont
Pair Trading with SBF 120 and ST Dupont
The main advantage of trading using opposite SBF 120 and ST Dupont positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, ST Dupont 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 ST Dupont will offset losses from the drop in ST Dupont's long position.| SBF 120 vs. Veolia Environnement VE | SBF 120 vs. Jacquet Metal Service | SBF 120 vs. Fiducial Office Solutions | SBF 120 vs. Guandao Puer Investment |
| ST Dupont vs. Avenir Telecom SA | ST Dupont vs. Chargeurs SA | ST Dupont vs. BigBen Interactive | ST Dupont vs. Manitou BF 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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