Correlation Between SFL and 191216CV0
Specify exactly 2 symbols:
By analyzing existing cross correlation between SFL Corporation and COCA COLA CO, you can compare the effects of market volatilities on SFL and 191216CV0 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 SFL with a short position of 191216CV0. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFL and 191216CV0.
Diversification Opportunities for SFL and 191216CV0
Very weak diversification
The 3 months correlation between SFL and 191216CV0 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding SFL Corp. and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO and SFL 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 SFL Corporation are associated (or correlated) with 191216CV0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of SFL i.e., SFL and 191216CV0 go up and down completely randomly.
Pair Corralation between SFL and 191216CV0
Considering the 90-day investment horizon SFL Corporation is expected to under-perform the 191216CV0. But the stock apears to be less risky and, when comparing its historical volatility, SFL Corporation is 1.38 times less risky than 191216CV0. The stock trades about -0.13 of its potential returns per unit of risk. The COCA COLA CO is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,842 in COCA COLA CO on September 26, 2024 and sell it today you would earn a total of 802.00 from holding COCA COLA CO or generate 9.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.41% |
Values | Daily Returns |
SFL Corp. vs. COCA COLA CO
Performance |
Timeline |
SFL Corporation |
COCA A CO |
SFL and 191216CV0 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SFL and 191216CV0
The main advantage of trading using opposite SFL and 191216CV0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFL position performs unexpectedly, 191216CV0 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 191216CV0 will offset losses from the drop in 191216CV0's long position.The idea behind SFL Corporation and COCA COLA CO pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |