Correlation Between SBF 120 and Fondo Mutuo
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By analyzing existing cross correlation between SBF 120 and Fondo Mutuo ETF, you can compare the effects of market volatilities on SBF 120 and Fondo Mutuo 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 Fondo Mutuo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Fondo Mutuo.
Diversification Opportunities for SBF 120 and Fondo Mutuo
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SBF and Fondo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Fondo Mutuo ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fondo Mutuo ETF 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 Fondo Mutuo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fondo Mutuo ETF has no effect on the direction of SBF 120 i.e., SBF 120 and Fondo Mutuo go up and down completely randomly.
Pair Corralation between SBF 120 and Fondo Mutuo
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the Fondo Mutuo. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 1.58 times less risky than Fondo Mutuo. The index trades about -0.2 of its potential returns per unit of risk. The Fondo Mutuo ETF is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 145,773 in Fondo Mutuo ETF on February 4, 2024 and sell it today you would lose (2,203) from holding Fondo Mutuo ETF or give up 1.51% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
SBF 120 vs. Fondo Mutuo ETF
Performance |
Timeline |
SBF 120 and Fondo Mutuo Volatility Contrast
Predicted Return Density |
Returns |
SBF 120
Pair trading matchups for SBF 120
Fondo Mutuo ETF
Pair trading matchups for Fondo Mutuo
Pair Trading with SBF 120 and Fondo Mutuo
The main advantage of trading using opposite SBF 120 and Fondo Mutuo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Fondo Mutuo 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 Fondo Mutuo will offset losses from the drop in Fondo Mutuo's long position.SBF 120 vs. Veolia Environnement VE | SBF 120 vs. Netmedia Group SA | SBF 120 vs. Impulse Fitness Solutions | SBF 120 vs. Seche Environnem |
Fondo Mutuo vs. Fondo De Inversion | Fondo Mutuo vs. Fondo De Inversion | Fondo Mutuo vs. Fondo de Inversin | Fondo Mutuo vs. Fondo de Inversion |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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