Correlation Between SBF 120 and Ipsen SA
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By analyzing existing cross correlation between SBF 120 and Ipsen SA, you can compare the effects of market volatilities on SBF 120 and Ipsen SA 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 Ipsen SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Ipsen SA.
Diversification Opportunities for SBF 120 and Ipsen SA
Poor diversification
The 3 months correlation between SBF and Ipsen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Ipsen SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ipsen 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 Ipsen SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ipsen SA has no effect on the direction of SBF 120 i.e., SBF 120 and Ipsen SA go up and down completely randomly.
Pair Corralation between SBF 120 and Ipsen SA
Assuming the 90 days trading horizon SBF 120 is expected to generate 3.13 times less return on investment than Ipsen SA. But when comparing it to its historical volatility, SBF 120 is 1.75 times less risky than Ipsen SA. It trades about 0.02 of its potential returns per unit of risk. Ipsen SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10,672 in Ipsen SA on November 5, 2024 and sell it today you would earn a total of 1,248 from holding Ipsen SA or generate 11.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SBF 120 vs. Ipsen SA
Performance |
| Timeline |
SBF 120 and Ipsen SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Ipsen SA
Pair trading matchups for Ipsen SA
Pair Trading with SBF 120 and Ipsen SA
The main advantage of trading using opposite SBF 120 and Ipsen SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Ipsen SA 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 Ipsen SA will offset losses from the drop in Ipsen SA's long position.| SBF 120 vs. Metalliance SA | SBF 120 vs. Technip Energies BV | SBF 120 vs. CMG Cleantech SA | SBF 120 vs. Gaztransport Technigaz SAS |
| Ipsen SA vs. Biomerieux SA | Ipsen SA vs. Eurofins Scientific SE | Ipsen SA vs. Sartorius Stedim Biotech | Ipsen SA vs. Arkema 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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