Correlation Between SBF 120 and Compagnie
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By analyzing existing cross correlation between SBF 120 and Compagnie de Chemins, you can compare the effects of market volatilities on SBF 120 and Compagnie 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 Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Compagnie.
Diversification Opportunities for SBF 120 and Compagnie
Excellent diversification
The 3 months correlation between SBF and Compagnie is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Compagnie de Chemins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de Chemins 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 Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de Chemins has no effect on the direction of SBF 120 i.e., SBF 120 and Compagnie go up and down completely randomly.
Pair Corralation between SBF 120 and Compagnie
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Compagnie. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 2.99 times less risky than Compagnie. The index trades about -0.18 of its potential returns per unit of risk. The Compagnie de Chemins is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 75,000 in Compagnie de Chemins on August 30, 2024 and sell it today you would earn a total of 15,000 from holding Compagnie de Chemins or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
SBF 120 vs. Compagnie de Chemins
Performance |
| Timeline |
SBF 120 and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Compagnie de Chemins
Pair trading matchups for Compagnie
Pair Trading with SBF 120 and Compagnie
The main advantage of trading using opposite SBF 120 and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie's long position.| SBF 120 vs. Novatech Industries SA | SBF 120 vs. FNP Technologies SA | SBF 120 vs. Impulse Fitness Solutions | SBF 120 vs. Union Technologies Informatique |
| Compagnie vs. Metalliance SA | Compagnie vs. CMG Cleantech SA | Compagnie vs. Les Hotels Bav | Compagnie vs. Impulse Fitness Solutions |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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