Correlation Between SBF 120 and Technip Energies
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By analyzing existing cross correlation between SBF 120 and Technip Energies BV, you can compare the effects of market volatilities on SBF 120 and Technip Energies 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 Technip Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Technip Energies.
Diversification Opportunities for SBF 120 and Technip Energies
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SBF and Technip is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Technip Energies BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technip Energies 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 Technip Energies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technip Energies has no effect on the direction of SBF 120 i.e., SBF 120 and Technip Energies go up and down completely randomly.
Pair Corralation between SBF 120 and Technip Energies
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Technip Energies. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 3.43 times less risky than Technip Energies. The index trades about -0.16 of its potential returns per unit of risk. The Technip Energies BV is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,024 in Technip Energies BV on August 26, 2024 and sell it today you would earn a total of 264.00 from holding Technip Energies BV or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. Technip Energies BV
Performance |
| Timeline |
SBF 120 and Technip Energies Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Technip Energies BV
Pair trading matchups for Technip Energies
Pair Trading with SBF 120 and Technip Energies
The main advantage of trading using opposite SBF 120 and Technip Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Technip Energies 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 Technip Energies will offset losses from the drop in Technip Energies' long position.| SBF 120 vs. Soditech SA | SBF 120 vs. Jacquet Metal Service | SBF 120 vs. Guandao Puer Investment | SBF 120 vs. Metalliance SA |
| Technip Energies vs. Gaztransport Technigaz SAS | Technip Energies vs. TotalEnergies SE | Technip Energies vs. Neoen SA | Technip Energies vs. Rubis SCA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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