Correlation Between SBF 120 and MRM SA
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By analyzing existing cross correlation between SBF 120 and MRM SA, you can compare the effects of market volatilities on SBF 120 and MRM SA 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 MRM SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and MRM SA.
Diversification Opportunities for SBF 120 and MRM SA
Very good diversification
The 3 months correlation between SBF and MRM is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and MRM SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRM 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 MRM SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRM SA has no effect on the direction of SBF 120 i.e., SBF 120 and MRM SA go up and down completely randomly.
Pair Corralation between SBF 120 and MRM SA
Assuming the 90 days trading horizon SBF 120 is expected to generate 69.75 times less return on investment than MRM SA. But when comparing it to its historical volatility, SBF 120 is 10.31 times less risky than MRM SA. It trades about 0.01 of its potential returns per unit of risk. MRM SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,921 in MRM SA on September 4, 2024 and sell it today you would earn a total of 1,629 from holding MRM SA or generate 84.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
SBF 120 vs. MRM SA
Performance |
| Timeline |
SBF 120 and MRM SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
MRM SA
Pair trading matchups for MRM SA
Pair Trading with SBF 120 and MRM SA
The main advantage of trading using opposite SBF 120 and MRM SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, MRM SA 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 MRM SA will offset losses from the drop in MRM SA's long position.| SBF 120 vs. Credit Agricole SA | SBF 120 vs. Entech SE SAS | SBF 120 vs. Lexibook Linguistic Electronic | SBF 120 vs. Gaztransport Technigaz SAS |
| MRM SA vs. Groupe Partouche SA | MRM SA vs. Fonciere Inea | MRM SA vs. Patrimoine et Commerce | MRM SA vs. Societe de la |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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