Correlation Between SBF 120 and Nhoa SA
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By analyzing existing cross correlation between SBF 120 and Nhoa SA, you can compare the effects of market volatilities on SBF 120 and Nhoa 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 Nhoa SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Nhoa SA.
Diversification Opportunities for SBF 120 and Nhoa SA
Very good diversification
The 3 months correlation between SBF and Nhoa is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Nhoa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nhoa 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 Nhoa SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nhoa SA has no effect on the direction of SBF 120 i.e., SBF 120 and Nhoa SA go up and down completely randomly.
Pair Corralation between SBF 120 and Nhoa SA
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Nhoa SA. In addition to that, SBF 120 is 1.96 times more volatile than Nhoa SA. It trades about -0.24 of its total potential returns per unit of risk. Nhoa SA is currently generating about -0.08 per unit of volatility. If you would invest 125.00 in Nhoa SA on August 29, 2024 and sell it today you would lose (1.00) from holding Nhoa SA or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Nhoa SA
Performance |
| Timeline |
SBF 120 and Nhoa SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Nhoa SA
Pair trading matchups for Nhoa SA
Pair Trading with SBF 120 and Nhoa SA
The main advantage of trading using opposite SBF 120 and Nhoa SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Nhoa 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 Nhoa SA will offset losses from the drop in Nhoa SA's long position.| SBF 120 vs. ZCCM Investments Holdings | SBF 120 vs. Les Hotels Bav | SBF 120 vs. X Fab Silicon | SBF 120 vs. CMG Cleantech 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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