Correlation Between Shell PLC and SBF 120
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By analyzing existing cross correlation between Shell PLC and SBF 120 Gross, you can compare the effects of market volatilities on Shell PLC and SBF 120 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 Shell PLC with a short position of SBF 120. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shell PLC and SBF 120.
Diversification Opportunities for Shell PLC and SBF 120
Very good diversification
The 3 months correlation between Shell and SBF is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shell PLC and SBF 120 Gross in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBF 120 Gross and Shell PLC 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 Shell PLC are associated (or correlated) with SBF 120. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBF 120 Gross has no effect on the direction of Shell PLC i.e., Shell PLC and SBF 120 go up and down completely randomly.
Pair Corralation between Shell PLC and SBF 120
Assuming the 90 days trading horizon Shell PLC is expected to generate 0.99 times more return on investment than SBF 120. However, Shell PLC is 1.01 times less risky than SBF 120. It trades about -0.02 of its potential returns per unit of risk. SBF 120 Gross is currently generating about -0.1 per unit of risk. If you would invest 3,087 in Shell PLC on September 3, 2024 and sell it today you would lose (15.00) from holding Shell PLC or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shell PLC vs. SBF 120 Gross
Performance |
| Timeline |
Shell PLC and SBF 120 Volatility Contrast
Predicted Return Density |
| Returns |
Shell PLC
Pair trading matchups for Shell PLC
SBF 120 Gross
Pair trading matchups for SBF 120
Pair Trading with Shell PLC and SBF 120
The main advantage of trading using opposite Shell PLC and SBF 120 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shell PLC position performs unexpectedly, SBF 120 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 SBF 120 will offset losses from the drop in SBF 120's long position.| Shell PLC vs. Koninklijke Ahold Delhaize | Shell PLC vs. Unilever PLC | Shell PLC vs. ING Groep NV | Shell PLC vs. ASML Holding NV |
| SBF 120 vs. Flow Traders BV | SBF 120 vs. Vastned Retail NV | SBF 120 vs. Sligro Food Group | SBF 120 vs. SBM Offshore NV |
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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