Correlation Between SBF 120 and Union Technologies
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By analyzing existing cross correlation between SBF 120 and Union Technologies Informatique, you can compare the effects of market volatilities on SBF 120 and Union Technologies 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 Union Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Union Technologies.
Diversification Opportunities for SBF 120 and Union Technologies
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBF and Union is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Union Technologies Informatiqu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Technologies 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 Union Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Technologies has no effect on the direction of SBF 120 i.e., SBF 120 and Union Technologies go up and down completely randomly.
Pair Corralation between SBF 120 and Union Technologies
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.25 times more return on investment than Union Technologies. However, SBF 120 is 4.07 times less risky than Union Technologies. It trades about 0.02 of its potential returns per unit of risk. Union Technologies Informatique is currently generating about -0.03 per unit of risk. If you would invest 512,249 in SBF 120 on August 30, 2024 and sell it today you would earn a total of 29,766 from holding SBF 120 or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Union Technologies Informatiqu
Performance |
| Timeline |
SBF 120 and Union Technologies Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Union Technologies Informatique
Pair trading matchups for Union Technologies
Pair Trading with SBF 120 and Union Technologies
The main advantage of trading using opposite SBF 120 and Union Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Union Technologies 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 Union Technologies will offset losses from the drop in Union Technologies' long position.| SBF 120 vs. Linedata Services SA | SBF 120 vs. Mauna Kea Technologies | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. ZCCM Investments Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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