Correlation Between Industrivarden and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Industrivarden and Sabre Insurance 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 Industrivarden and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrivarden AB ser and Sabre Insurance Group, you can compare the effects of market volatilities on Industrivarden and Sabre Insurance 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 Industrivarden with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrivarden and Sabre Insurance.
Diversification Opportunities for Industrivarden and Sabre Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrivarden and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Industrivarden AB ser and Sabre Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Insurance Group and Industrivarden 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 Industrivarden AB ser are associated (or correlated) with Sabre Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Insurance Group has no effect on the direction of Industrivarden i.e., Industrivarden and Sabre Insurance go up and down completely randomly.
Pair Corralation between Industrivarden and Sabre Insurance
Assuming the 90 days trading horizon Industrivarden AB ser is expected to generate 0.64 times more return on investment than Sabre Insurance. However, Industrivarden AB ser is 1.57 times less risky than Sabre Insurance. It trades about 0.0 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about -0.1 per unit of risk. If you would invest 36,780 in Industrivarden AB ser on September 3, 2024 and sell it today you would lose (400.00) from holding Industrivarden AB ser or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrivarden AB ser vs. Sabre Insurance Group
Performance |
| Timeline |
| Industrivarden AB ser |
| Sabre Insurance Group |
Industrivarden and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrivarden and Sabre Insurance
The main advantage of trading using opposite Industrivarden and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrivarden position performs unexpectedly, Sabre Insurance 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 Sabre Insurance will offset losses from the drop in Sabre Insurance's long position.| Industrivarden vs. Lowland Investment Co | Industrivarden vs. New Residential Investment | Industrivarden vs. Advanced Medical Solutions | Industrivarden vs. Ross Stores |
| Sabre Insurance vs. McEwen Mining | Sabre Insurance vs. United Internet AG | Sabre Insurance vs. Universal Display Corp | Sabre Insurance vs. GoldMining |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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