Correlation Between SBF 120 and Hotel Majestic
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By analyzing existing cross correlation between SBF 120 and Hotel Majestic Cannes, you can compare the effects of market volatilities on SBF 120 and Hotel Majestic 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 Hotel Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Hotel Majestic.
Diversification Opportunities for SBF 120 and Hotel Majestic
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SBF and Hotel is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Hotel Majestic Cannes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Majestic Cannes 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 Hotel Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Majestic Cannes has no effect on the direction of SBF 120 i.e., SBF 120 and Hotel Majestic go up and down completely randomly.
Pair Corralation between SBF 120 and Hotel Majestic
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Hotel Majestic. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 2.19 times less risky than Hotel Majestic. The index trades about -0.08 of its potential returns per unit of risk. The Hotel Majestic Cannes is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 545,000 in Hotel Majestic Cannes on September 1, 2024 and sell it today you would lose (25,000) from holding Hotel Majestic Cannes or give up 4.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
SBF 120 vs. Hotel Majestic Cannes
Performance |
| Timeline |
SBF 120 and Hotel Majestic Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Hotel Majestic Cannes
Pair trading matchups for Hotel Majestic
Pair Trading with SBF 120 and Hotel Majestic
The main advantage of trading using opposite SBF 120 and Hotel Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Hotel Majestic 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 Hotel Majestic will offset losses from the drop in Hotel Majestic's long position.| SBF 120 vs. Jacquet Metal Service | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Hotelim Socit Anonyme | SBF 120 vs. Gaztransport Technigaz SAS |
| Hotel Majestic vs. Eutelsat Communications SA | Hotel Majestic vs. Novatech Industries SA | Hotel Majestic vs. Axway Software | Hotel Majestic vs. Mauna Kea Technologies |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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