Correlation Between SBF 120 and NSC Groupe
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By analyzing existing cross correlation between SBF 120 and NSC Groupe SA, you can compare the effects of market volatilities on SBF 120 and NSC 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 NSC Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and NSC Groupe.
Diversification Opportunities for SBF 120 and NSC Groupe
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBF and NSC is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and NSC Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSC Groupe 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 NSC Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSC Groupe SA has no effect on the direction of SBF 120 i.e., SBF 120 and NSC Groupe go up and down completely randomly.
Pair Corralation between SBF 120 and NSC Groupe
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the NSC Groupe. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 6.6 times less risky than NSC Groupe. The index trades about -0.2 of its potential returns per unit of risk. The NSC Groupe SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,480 in NSC Groupe SA on February 3, 2024 and sell it today you would earn a total of 570.00 from holding NSC Groupe SA or generate 12.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SBF 120 vs. NSC Groupe SA
Performance |
Timeline |
SBF 120 and NSC Groupe Volatility Contrast
Predicted Return Density |
Returns |
SBF 120
Pair trading matchups for SBF 120
NSC Groupe SA
Pair trading matchups for NSC Groupe
Pair Trading with SBF 120 and NSC Groupe
The main advantage of trading using opposite SBF 120 and NSC Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, NSC 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 NSC Groupe will offset losses from the drop in NSC Groupe's long position.SBF 120 vs. Affluent Medical SAS | SBF 120 vs. Guandao Puer Investment | SBF 120 vs. STMicroelectronics NV | SBF 120 vs. ISPD Network SA |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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