Correlation Between SFS REAL and SOVEREIGN TRUST
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By analyzing existing cross correlation between SFS REAL ESTATE and SOVEREIGN TRUST INSURANCE, you can compare the effects of market volatilities on SFS REAL and SOVEREIGN TRUST 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 SFS REAL with a short position of SOVEREIGN TRUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFS REAL and SOVEREIGN TRUST.
Diversification Opportunities for SFS REAL and SOVEREIGN TRUST
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SFS and SOVEREIGN is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SFS REAL ESTATE and SOVEREIGN TRUST INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOVEREIGN TRUST INSURANCE and SFS REAL 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 SFS REAL ESTATE are associated (or correlated) with SOVEREIGN TRUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOVEREIGN TRUST INSURANCE has no effect on the direction of SFS REAL i.e., SFS REAL and SOVEREIGN TRUST go up and down completely randomly.
Pair Corralation between SFS REAL and SOVEREIGN TRUST
Assuming the 90 days trading horizon SFS REAL is expected to generate 2.41 times less return on investment than SOVEREIGN TRUST. But when comparing it to its historical volatility, SFS REAL ESTATE is 1.84 times less risky than SOVEREIGN TRUST. It trades about 0.21 of its potential returns per unit of risk. SOVEREIGN TRUST INSURANCE is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 109.00 in SOVEREIGN TRUST INSURANCE on April 20, 2025 and sell it today you would earn a total of 26.00 from holding SOVEREIGN TRUST INSURANCE or generate 23.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SFS REAL ESTATE vs. SOVEREIGN TRUST INSURANCE
Performance |
| Timeline |
| SFS REAL ESTATE |
| SOVEREIGN TRUST INSURANCE |
SFS REAL and SOVEREIGN TRUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFS REAL and SOVEREIGN TRUST
The main advantage of trading using opposite SFS REAL and SOVEREIGN TRUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFS REAL position performs unexpectedly, SOVEREIGN TRUST 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 SOVEREIGN TRUST will offset losses from the drop in SOVEREIGN TRUST's long position.| SFS REAL vs. GUINEA INSURANCE PLC | SFS REAL vs. ALUMINIUM EXTRUSION IND | SFS REAL vs. VITAFOAM NIGERIA PLC | SFS REAL vs. JAPAUL OIL MARITIME |
| SOVEREIGN TRUST vs. GUINEA INSURANCE PLC | SOVEREIGN TRUST vs. ALUMINIUM EXTRUSION IND | SOVEREIGN TRUST vs. VITAFOAM NIGERIA PLC | SOVEREIGN TRUST vs. JAPAUL OIL MARITIME |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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