Correlation Between SBF 120 and FIPP SA
Specify exactly 2 symbols:
By analyzing existing cross correlation between SBF 120 and FIPP SA, you can compare the effects of market volatilities on SBF 120 and FIPP 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 FIPP SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and FIPP SA.
Diversification Opportunities for SBF 120 and FIPP SA
Good diversification
The 3 months correlation between SBF and FIPP is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and FIPP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIPP 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 FIPP SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIPP SA has no effect on the direction of SBF 120 i.e., SBF 120 and FIPP SA go up and down completely randomly.
Pair Corralation between SBF 120 and FIPP SA
Assuming the 90 days trading horizon SBF 120 is expected to generate 27.67 times less return on investment than FIPP SA. But when comparing it to its historical volatility, SBF 120 is 12.08 times less risky than FIPP SA. It trades about 0.02 of its potential returns per unit of risk. FIPP SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 14.00 in FIPP SA on September 26, 2024 and sell it today you would earn a total of 0.00 from holding FIPP SA or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SBF 120 vs. FIPP SA
Performance |
Timeline |
SBF 120 and FIPP SA Volatility Contrast
Predicted Return Density |
Returns |
SBF 120
Pair trading matchups for SBF 120
FIPP SA
Pair trading matchups for FIPP SA
Pair Trading with SBF 120 and FIPP SA
The main advantage of trading using opposite SBF 120 and FIPP SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, FIPP 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 FIPP SA will offset losses from the drop in FIPP SA's long position.SBF 120 vs. ISPD Network SA | SBF 120 vs. ZCCM Investments Holdings | SBF 120 vs. Gaztransport Technigaz SAS | SBF 120 vs. Innelec Multimedia |
FIPP SA vs. TotalEnergies SE | FIPP SA vs. LVMH Mot Hennessy | FIPP SA vs. Christian Dior SE | FIPP SA vs. BNP Paribas 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |