Correlation Between SBF 120 and Parx Plastics
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By analyzing existing cross correlation between SBF 120 and Parx Plastics NV, you can compare the effects of market volatilities on SBF 120 and Parx Plastics 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 Parx Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Parx Plastics.
Diversification Opportunities for SBF 120 and Parx Plastics
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBF and Parx is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Parx Plastics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parx Plastics NV 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 Parx Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parx Plastics NV has no effect on the direction of SBF 120 i.e., SBF 120 and Parx Plastics go up and down completely randomly.
Pair Corralation between SBF 120 and Parx Plastics
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.48 times more return on investment than Parx Plastics. However, SBF 120 is 2.08 times less risky than Parx Plastics. It trades about 0.0 of its potential returns per unit of risk. Parx Plastics NV is currently generating about -0.21 per unit of risk. If you would invest 550,631 in SBF 120 on September 25, 2024 and sell it today you would earn a total of 125.00 from holding SBF 120 or generate 0.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
SBF 120 vs. Parx Plastics NV
Performance |
Timeline |
SBF 120 and Parx Plastics Volatility Contrast
Predicted Return Density |
Returns |
SBF 120
Pair trading matchups for SBF 120
Parx Plastics NV
Pair trading matchups for Parx Plastics
Pair Trading with SBF 120 and Parx Plastics
The main advantage of trading using opposite SBF 120 and Parx Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Parx Plastics 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 Parx Plastics will offset losses from the drop in Parx Plastics' long position.SBF 120 vs. STMicroelectronics NV | SBF 120 vs. Marie Brizard Wine | SBF 120 vs. Covivio Hotels | SBF 120 vs. Parx Plastics NV |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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