Correlation Between SBF 120 and Hopening
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By analyzing existing cross correlation between SBF 120 and Hopening SA, you can compare the effects of market volatilities on SBF 120 and Hopening 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 Hopening. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Hopening.
Diversification Opportunities for SBF 120 and Hopening
Average diversification
The 3 months correlation between SBF and Hopening is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Hopening SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hopening SA 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 Hopening. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hopening SA has no effect on the direction of SBF 120 i.e., SBF 120 and Hopening go up and down completely randomly.
Pair Corralation between SBF 120 and Hopening
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.63 times more return on investment than Hopening. However, SBF 120 is 1.58 times less risky than Hopening. It trades about -0.09 of its potential returns per unit of risk. Hopening SA is currently generating about -0.07 per unit of risk. If you would invest 606,793 in SBF 120 on August 29, 2024 and sell it today you would lose (64,778) from holding SBF 120 or give up 10.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.12% |
| Values | Daily Returns |
SBF 120 vs. Hopening SA
Performance |
| Timeline |
SBF 120 and Hopening Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Hopening SA
Pair trading matchups for Hopening
Pair Trading with SBF 120 and Hopening
The main advantage of trading using opposite SBF 120 and Hopening positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Hopening 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 Hopening will offset losses from the drop in Hopening's long position.| SBF 120 vs. Linedata Services SA | SBF 120 vs. Mauna Kea Technologies | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. ZCCM Investments Holdings |
| Hopening vs. Linedata Services SA | Hopening vs. Mauna Kea Technologies | Hopening vs. Invibes Advertising NV | Hopening vs. Hotel Majestic Cannes |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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