Correlation Between SBF 120 and Multi Units
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By analyzing existing cross correlation between SBF 120 and Multi Units Luxembourg, you can compare the effects of market volatilities on SBF 120 and Multi Units 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 Multi Units. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Multi Units.
Diversification Opportunities for SBF 120 and Multi Units
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SBF and Multi is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Multi Units Luxembourg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units Luxembourg 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 Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units Luxembourg has no effect on the direction of SBF 120 i.e., SBF 120 and Multi Units go up and down completely randomly.
Pair Corralation between SBF 120 and Multi Units
Assuming the 90 days trading horizon SBF 120 is expected to generate 5.4 times less return on investment than Multi Units. In addition to that, SBF 120 is 1.07 times more volatile than Multi Units Luxembourg. It trades about 0.02 of its total potential returns per unit of risk. Multi Units Luxembourg is currently generating about 0.12 per unit of volatility. If you would invest 3,772 in Multi Units Luxembourg on August 29, 2024 and sell it today you would earn a total of 2,158 from holding Multi Units Luxembourg or generate 57.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SBF 120 vs. Multi Units Luxembourg
Performance |
| Timeline |
SBF 120 and Multi Units Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Multi Units Luxembourg
Pair trading matchups for Multi Units
Pair Trading with SBF 120 and Multi Units
The main advantage of trading using opposite SBF 120 and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' 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 |
| Multi Units vs. Multi Units Luxembourg | Multi Units vs. Multi Units Luxembourg | Multi Units vs. Multi Units France | Multi Units vs. Multi Units Luxembourg |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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