Correlation Between SBF 120 and Altamir SCA
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By analyzing existing cross correlation between SBF 120 and Altamir SCA, you can compare the effects of market volatilities on SBF 120 and Altamir SCA 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 Altamir SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Altamir SCA.
Diversification Opportunities for SBF 120 and Altamir SCA
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBF and Altamir is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Altamir SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamir SCA 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 Altamir SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamir SCA has no effect on the direction of SBF 120 i.e., SBF 120 and Altamir SCA go up and down completely randomly.
Pair Corralation between SBF 120 and Altamir SCA
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.72 times more return on investment than Altamir SCA. However, SBF 120 is 1.4 times less risky than Altamir SCA. It trades about 0.02 of its potential returns per unit of risk. Altamir SCA is currently generating about 0.0 per unit of risk. If you would invest 510,623 in SBF 120 on August 28, 2024 and sell it today you would earn a total of 40,008 from holding SBF 120 or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Altamir SCA
Performance |
| Timeline |
SBF 120 and Altamir SCA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Altamir SCA
Pair trading matchups for Altamir SCA
Pair Trading with SBF 120 and Altamir SCA
The main advantage of trading using opposite SBF 120 and Altamir SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Altamir SCA 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 Altamir SCA will offset losses from the drop in Altamir SCA's long position.| SBF 120 vs. ZCCM Investments Holdings | SBF 120 vs. Les Hotels Bav | SBF 120 vs. X Fab Silicon | SBF 120 vs. CMG Cleantech SA |
| Altamir SCA vs. Wendel | Altamir SCA vs. Eurazeo | Altamir SCA vs. ABC arbitrage SA | Altamir SCA vs. IDI SCA |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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