Correlation Between BBB Foods and SANLTD
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By analyzing existing cross correlation between BBB Foods and SANLTD 28 08 MAR 27, you can compare the effects of market volatilities on BBB Foods and SANLTD 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 BBB Foods with a short position of SANLTD. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and SANLTD.
Diversification Opportunities for BBB Foods and SANLTD
Poor diversification
The 3 months correlation between BBB and SANLTD is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods and SANLTD 28 08 MAR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANLTD 28 08 and BBB Foods 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 BBB Foods are associated (or correlated) with SANLTD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANLTD 28 08 has no effect on the direction of BBB Foods i.e., BBB Foods and SANLTD go up and down completely randomly.
Pair Corralation between BBB Foods and SANLTD
Given the investment horizon of 90 days BBB Foods is expected to generate 1.4 times more return on investment than SANLTD. However, BBB Foods is 1.4 times more volatile than SANLTD 28 08 MAR 27. It trades about -0.16 of its potential returns per unit of risk. SANLTD 28 08 MAR 27 is currently generating about -0.3 per unit of risk. If you would invest 3,194 in BBB Foods on September 1, 2024 and sell it today you would lose (372.00) from holding BBB Foods or give up 11.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 57.14% |
| Values | Daily Returns |
BBB Foods vs. SANLTD 28 08 MAR 27
Performance |
| Timeline |
| BBB Foods |
| SANLTD 28 08 |
BBB Foods and SANLTD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBB Foods and SANLTD
The main advantage of trading using opposite BBB Foods and SANLTD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBB Foods position performs unexpectedly, SANLTD 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 SANLTD will offset losses from the drop in SANLTD's long position.| BBB Foods vs. Ingles Markets Incorporated | BBB Foods vs. Sendas Distribuidora SA | BBB Foods vs. Grocery Outlet Holding | BBB Foods vs. Ocado Group plc |
| SANLTD vs. Cincinnati Financial | SANLTD vs. Maiden Holdings | SANLTD vs. QBE Insurance Group | SANLTD vs. GoHealth |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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