Correlation Between CBH and Sofina Société

Can any of the company-specific risk be diversified away by investing in both CBH and Sofina Société at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CBH and Sofina Société into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CBH and Sofina Socit Anonyme, you can compare the effects of market volatilities on CBH and Sofina Société 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 CBH with a short position of Sofina Société. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Sofina Société.

Diversification Opportunities for CBH and Sofina Société

0.0

Correlation Coefficient

CBH  Sofina Société

Pay attention - limited upside

The 3 months correlation between CBH and Sofina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Sofina Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sofina Socit Anonyme and CBH 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 CBH are associated (or correlated) with Sofina Société. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sofina Socit Anonyme has no effect on the direction of CBH i.e., CBH and Sofina Société go up and down completely randomly.

Pair Corralation between CBH and Sofina Société

If you would invest  23,743  in Sofina Socit Anonyme on May 6, 2025 and sell it today you would earn a total of  8,297  from holding Sofina Socit Anonyme or generate 34.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CBH  vs.  Sofina Socit Anonyme

CBH

Risk-Adjusted Performance

Very Weak

Over the last 90 days CBH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, CBH is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Sofina Socit Anonyme

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sofina Socit Anonyme are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Sofina Société reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CBH and Sofina Société

The main advantage of trading using opposite CBH and Sofina Société positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Sofina Société 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 Sofina Société will offset losses from the drop in Sofina Société's long position.

The idea behind CBH and Sofina Socit Anonyme 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.