Correlation Between SBF 120 and Eutelsat Communications
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By analyzing existing cross correlation between SBF 120 and Eutelsat Communications SA, you can compare the effects of market volatilities on SBF 120 and Eutelsat Communications 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 Eutelsat Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Eutelsat Communications.
Diversification Opportunities for SBF 120 and Eutelsat Communications
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SBF and Eutelsat is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Eutelsat Communications SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eutelsat Communications 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 Eutelsat Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eutelsat Communications has no effect on the direction of SBF 120 i.e., SBF 120 and Eutelsat Communications go up and down completely randomly.
Pair Corralation between SBF 120 and Eutelsat Communications
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.4 times more return on investment than Eutelsat Communications. However, SBF 120 is 2.5 times less risky than Eutelsat Communications. It trades about -0.08 of its potential returns per unit of risk. Eutelsat Communications SA is currently generating about -0.14 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 | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
SBF 120 vs. Eutelsat Communications SA
Performance |
| Timeline |
SBF 120 and Eutelsat Communications Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Eutelsat Communications SA
Pair trading matchups for Eutelsat Communications
Pair Trading with SBF 120 and Eutelsat Communications
The main advantage of trading using opposite SBF 120 and Eutelsat Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Eutelsat Communications 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 Eutelsat Communications will offset losses from the drop in Eutelsat Communications' 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 |
| Eutelsat Communications vs. SES S A | Eutelsat Communications vs. Rubis SCA | Eutelsat Communications vs. Coface SA | Eutelsat Communications vs. SCOR SE |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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