Correlation Between SBF 120 and Compagnie Des
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By analyzing existing cross correlation between SBF 120 and Compagnie des Eaux, you can compare the effects of market volatilities on SBF 120 and Compagnie Des 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 Des. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Compagnie Des.
Diversification Opportunities for SBF 120 and Compagnie Des
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SBF and Compagnie is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Compagnie des Eaux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie des Eaux 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 Des. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie des Eaux has no effect on the direction of SBF 120 i.e., SBF 120 and Compagnie Des go up and down completely randomly.
Pair Corralation between SBF 120 and Compagnie Des
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.19 times more return on investment than Compagnie Des. However, SBF 120 is 5.13 times less risky than Compagnie Des. It trades about 0.02 of its potential returns per unit of risk. Compagnie des Eaux is currently generating about 0.0 per unit of risk. If you would invest 513,914 in SBF 120 on August 26, 2024 and sell it today you would earn a total of 36,245 from holding SBF 120 or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.44% |
| Values | Daily Returns |
SBF 120 vs. Compagnie des Eaux
Performance |
| Timeline |
SBF 120 and Compagnie Des Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Compagnie des Eaux
Pair trading matchups for Compagnie Des
Pair Trading with SBF 120 and Compagnie Des
The main advantage of trading using opposite SBF 120 and Compagnie Des positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Compagnie Des 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 Des will offset losses from the drop in Compagnie Des' long position.| SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Soditech SA | SBF 120 vs. Entech SE SAS | SBF 120 vs. Covivio Hotels |
| Compagnie Des vs. lectricite de Strasbourg | Compagnie Des vs. EPC Groupe | Compagnie Des vs. Methanor | Compagnie Des vs. Manitou BF 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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