Correlation Between SBF 120 and Renault SA
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By analyzing existing cross correlation between SBF 120 and Renault SA, you can compare the effects of market volatilities on SBF 120 and Renault 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 Renault SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Renault SA.
Diversification Opportunities for SBF 120 and Renault SA
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between SBF and Renault is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Renault SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renault 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 Renault SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renault SA has no effect on the direction of SBF 120 i.e., SBF 120 and Renault SA go up and down completely randomly.
Pair Corralation between SBF 120 and Renault SA
Assuming the 90 days trading horizon SBF 120 is expected to generate 3.06 times less return on investment than Renault SA. But when comparing it to its historical volatility, SBF 120 is 2.28 times less risky than Renault SA. It trades about 0.02 of its potential returns per unit of risk. Renault SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,295 in Renault SA on August 28, 2024 and sell it today you would earn a total of 698.00 from holding Renault SA or generate 21.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Renault SA
Performance |
| Timeline |
SBF 120 and Renault SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Renault SA
Pair trading matchups for Renault SA
Pair Trading with SBF 120 and Renault SA
The main advantage of trading using opposite SBF 120 and Renault SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Renault 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 Renault SA will offset losses from the drop in Renault SA's long position.| SBF 120 vs. X Fab Silicon | SBF 120 vs. Axway Software | SBF 120 vs. Covivio Hotels | SBF 120 vs. Novatech Industries SA |
| Renault SA vs. Carrefour SA | Renault SA vs. BNP Paribas SA | Renault SA vs. Societe Generale SA | Renault SA vs. Credit Agricole 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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