Correlation Between SBF 120 and SQLI SA
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By analyzing existing cross correlation between SBF 120 and SQLI SA, you can compare the effects of market volatilities on SBF 120 and SQLI 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 SQLI SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and SQLI SA.
Diversification Opportunities for SBF 120 and SQLI SA
Good diversification
The 3 months correlation between SBF and SQLI is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and SQLI SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQLI 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 SQLI SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQLI SA has no effect on the direction of SBF 120 i.e., SBF 120 and SQLI SA go up and down completely randomly.
Pair Corralation between SBF 120 and SQLI SA
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the SQLI SA. In addition to that, SBF 120 is 2.54 times more volatile than SQLI SA. It trades about -0.16 of its total potential returns per unit of risk. SQLI SA is currently generating about 0.12 per unit of volatility. If you would invest 5,350 in SQLI SA on August 25, 2024 and sell it today you would earn a total of 50.00 from holding SQLI SA or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SBF 120 vs. SQLI SA
Performance |
| Timeline |
SBF 120 and SQLI SA Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
SQLI SA
Pair trading matchups for SQLI SA
Pair Trading with SBF 120 and SQLI SA
The main advantage of trading using opposite SBF 120 and SQLI SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, SQLI 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 SQLI SA will offset losses from the drop in SQLI SA's long position.| SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Soditech SA | SBF 120 vs. Entech SE SAS | SBF 120 vs. Covivio Hotels |
| SQLI SA vs. Sword Group SE | SQLI SA vs. Neurones | SQLI SA vs. Sopra Steria Group | SQLI SA vs. Linedata Services 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 Stocks Directory module to find actively traded stocks across global markets.
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