Correlation Between SBF 120 and OVH Groupe
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By analyzing existing cross correlation between SBF 120 and OVH Groupe SAS, you can compare the effects of market volatilities on SBF 120 and OVH Groupe 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 OVH Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and OVH Groupe.
Diversification Opportunities for SBF 120 and OVH Groupe
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SBF and OVH is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and OVH Groupe SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OVH Groupe SAS 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 OVH Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OVH Groupe SAS has no effect on the direction of SBF 120 i.e., SBF 120 and OVH Groupe go up and down completely randomly.
Pair Corralation between SBF 120 and OVH Groupe
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.47 times more return on investment than OVH Groupe. However, SBF 120 is 2.11 times less risky than OVH Groupe. It trades about 0.14 of its potential returns per unit of risk. OVH Groupe SAS is currently generating about -0.33 per unit of risk. If you would invest 593,038 in SBF 120 on December 5, 2024 and sell it today you would earn a total of 14,081 from holding SBF 120 or generate 2.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SBF 120 vs. OVH Groupe SAS
Performance |
Timeline |
SBF 120 and OVH Groupe Volatility Contrast
Predicted Return Density |
Returns |
SBF 120
Pair trading matchups for SBF 120
OVH Groupe SAS
Pair trading matchups for OVH Groupe
Pair Trading with SBF 120 and OVH Groupe
The main advantage of trading using opposite SBF 120 and OVH Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, OVH Groupe 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 OVH Groupe will offset losses from the drop in OVH Groupe's long position.SBF 120 vs. Jacquet Metal Service | SBF 120 vs. X Fab Silicon | SBF 120 vs. Metalliance SA | SBF 120 vs. Sogeclair SA |
OVH Groupe vs. La Francaise Des | OVH Groupe vs. TotalEnergies SE | OVH Groupe vs. Worldline SA | OVH Groupe vs. Atos SE |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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