Correlation Between SBF 120 and Multi Units
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By analyzing existing cross correlation between SBF 120 and Multi Units France, you can compare the effects of market volatilities on SBF 120 and Multi Units 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 Multi Units. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Multi Units.
Diversification Opportunities for SBF 120 and Multi Units
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SBF and Multi is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Multi Units France in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units France 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 Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units France has no effect on the direction of SBF 120 i.e., SBF 120 and Multi Units go up and down completely randomly.
Pair Corralation between SBF 120 and Multi Units
Assuming the 90 days trading horizon SBF 120 is expected to generate 1.97 times less return on investment than Multi Units. But when comparing it to its historical volatility, SBF 120 is 1.01 times less risky than Multi Units. It trades about 0.02 of its potential returns per unit of risk. Multi Units France is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,083 in Multi Units France on September 2, 2024 and sell it today you would earn a total of 190.00 from holding Multi Units France or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Multi Units France
Performance |
| Timeline |
SBF 120 and Multi Units Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Multi Units France
Pair trading matchups for Multi Units
Pair Trading with SBF 120 and Multi Units
The main advantage of trading using opposite SBF 120 and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' 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 |
| Multi Units vs. Lyxor UCITS MSCI | Multi Units vs. Lyxor UCITS Stoxx | Multi Units vs. Multi Units France | Multi Units vs. Lyxor MSCI Brazil |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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