Correlation Between SBF 120 and Patrimoine
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By analyzing existing cross correlation between SBF 120 and Patrimoine et Commerce, you can compare the effects of market volatilities on SBF 120 and Patrimoine 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 Patrimoine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Patrimoine.
Diversification Opportunities for SBF 120 and Patrimoine
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SBF and Patrimoine is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Patrimoine et Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patrimoine et Commerce 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 Patrimoine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patrimoine et Commerce has no effect on the direction of SBF 120 i.e., SBF 120 and Patrimoine go up and down completely randomly.
Pair Corralation between SBF 120 and Patrimoine
Assuming the 90 days trading horizon SBF 120 is expected to generate 1.53 times more return on investment than Patrimoine. However, SBF 120 is 1.53 times more volatile than Patrimoine et Commerce. It trades about -0.21 of its potential returns per unit of risk. Patrimoine et Commerce is currently generating about -0.39 per unit of risk. If you would invest 569,317 in SBF 120 on August 30, 2024 and sell it today you would lose (24,527) from holding SBF 120 or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Patrimoine et Commerce
Performance |
| Timeline |
SBF 120 and Patrimoine Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Patrimoine et Commerce
Pair trading matchups for Patrimoine
Pair Trading with SBF 120 and Patrimoine
The main advantage of trading using opposite SBF 120 and Patrimoine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Patrimoine 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 Patrimoine will offset losses from the drop in Patrimoine's long position.| SBF 120 vs. Novatech Industries SA | SBF 120 vs. FNP Technologies SA | SBF 120 vs. Impulse Fitness Solutions | SBF 120 vs. Union Technologies Informatique |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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