Correlation Between SBF 120 and Media 6
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By analyzing existing cross correlation between SBF 120 and Media 6 SA, you can compare the effects of market volatilities on SBF 120 and Media 6 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 Media 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Media 6.
Diversification Opportunities for SBF 120 and Media 6
Very good diversification
The 3 months correlation between SBF and Media is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Media 6 SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media 6 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 Media 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media 6 SA has no effect on the direction of SBF 120 i.e., SBF 120 and Media 6 go up and down completely randomly.
Pair Corralation between SBF 120 and Media 6
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.16 times more return on investment than Media 6. However, SBF 120 is 6.15 times less risky than Media 6. It trades about -0.12 of its potential returns per unit of risk. Media 6 SA is currently generating about -0.07 per unit of risk. If you would invest 561,989 in SBF 120 on September 2, 2024 and sell it today you would lose (13,366) from holding SBF 120 or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Media 6 SA
Performance |
| Timeline |
SBF 120 and Media 6 Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Media 6 SA
Pair trading matchups for Media 6
Pair Trading with SBF 120 and Media 6
The main advantage of trading using opposite SBF 120 and Media 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Media 6 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 Media 6 will offset losses from the drop in Media 6's long position.| SBF 120 vs. Hotelim Socit Anonyme | SBF 120 vs. Hoteles Bestprice SA | SBF 120 vs. Axway Software | SBF 120 vs. Mauna Kea Technologies |
| Media 6 vs. Lacroix Group SA | Media 6 vs. Fiducial Office Solutions | Media 6 vs. ACTEOS SA | Media 6 vs. Passat Socit Anonyme |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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