Correlation Between SBF 120 and Soditech
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By analyzing existing cross correlation between SBF 120 and Soditech SA, you can compare the effects of market volatilities on SBF 120 and Soditech 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 Soditech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Soditech.
Diversification Opportunities for SBF 120 and Soditech
Good diversification
The 3 months correlation between SBF and Soditech is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Soditech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soditech 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 Soditech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soditech SA has no effect on the direction of SBF 120 i.e., SBF 120 and Soditech go up and down completely randomly.
Pair Corralation between SBF 120 and Soditech
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Soditech. In addition to that, SBF 120 is 2.39 times more volatile than Soditech SA. It trades about -0.23 of its total potential returns per unit of risk. Soditech SA is currently generating about -0.29 per unit of volatility. If you would invest 128.00 in Soditech SA on August 29, 2024 and sell it today you would lose (3.00) from holding Soditech SA or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SBF 120 vs. Soditech SA
Performance |
| Timeline |
SBF 120 and Soditech Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Soditech SA
Pair trading matchups for Soditech
Pair Trading with SBF 120 and Soditech
The main advantage of trading using opposite SBF 120 and Soditech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Soditech 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 Soditech will offset losses from the drop in Soditech'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 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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