Correlation Between SFL and 00206RAN2
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By analyzing existing cross correlation between SFL Corporation and ATT INC 64, you can compare the effects of market volatilities on SFL and 00206RAN2 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 SFL with a short position of 00206RAN2. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFL and 00206RAN2.
Diversification Opportunities for SFL and 00206RAN2
Very good diversification
The 3 months correlation between SFL and 00206RAN2 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SFL Corp. and ATT INC 64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT INC 64 and SFL 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 SFL Corporation are associated (or correlated) with 00206RAN2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT INC 64 has no effect on the direction of SFL i.e., SFL and 00206RAN2 go up and down completely randomly.
Pair Corralation between SFL and 00206RAN2
Considering the 90-day investment horizon SFL Corporation is expected to generate 1.88 times more return on investment than 00206RAN2. However, SFL is 1.88 times more volatile than ATT INC 64. It trades about -0.04 of its potential returns per unit of risk. ATT INC 64 is currently generating about -0.45 per unit of risk. If you would invest 1,067 in SFL Corporation on September 3, 2024 and sell it today you would lose (15.00) from holding SFL Corporation or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 20.0% |
| Values | Daily Returns |
SFL Corp. vs. ATT INC 64
Performance |
| Timeline |
| SFL Corporation |
| ATT INC 64 |
SFL and 00206RAN2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFL and 00206RAN2
The main advantage of trading using opposite SFL and 00206RAN2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFL position performs unexpectedly, 00206RAN2 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 00206RAN2 will offset losses from the drop in 00206RAN2's long position.The idea behind SFL Corporation and ATT INC 64 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 00206RAN2 vs. Vita Coco | 00206RAN2 vs. Western Sierra Mining | 00206RAN2 vs. Vindicator Silver Lead Mining | 00206RAN2 vs. Paiute Oil Mining |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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