Correlation Between United States and Sabien Technology
Can any of the company-specific risk be diversified away by investing in both United States and Sabien Technology 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 United States and Sabien Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and Sabien Technology Group, you can compare the effects of market volatilities on United States and Sabien Technology 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 United States with a short position of Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Sabien Technology.
Diversification Opportunities for United States and Sabien Technology
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and Sabien is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology and United States 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 United States Steel are associated (or correlated) with Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of United States i.e., United States and Sabien Technology go up and down completely randomly.
Pair Corralation between United States and Sabien Technology
Assuming the 90 days trading horizon United States Steel is expected to under-perform the Sabien Technology. But the stock apears to be less risky and, when comparing its historical volatility, United States Steel is 1.81 times less risky than Sabien Technology. The stock trades about -0.21 of its potential returns per unit of risk. The Sabien Technology Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 975.00 in Sabien Technology Group on September 25, 2024 and sell it today you would earn a total of 300.00 from holding Sabien Technology Group or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
United States Steel vs. Sabien Technology Group
Performance |
| Timeline |
| United States Steel |
| Sabien Technology |
United States and Sabien Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Sabien Technology
The main advantage of trading using opposite United States and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology's long position.| United States vs. Seche Environnement SA | United States vs. Ross Stores | United States vs. Infrastrutture Wireless Italiane | United States vs. Gamma Communications PLC |
| Sabien Technology vs. Abingdon Health Plc | Sabien Technology vs. Induction Healthcare Group | Sabien Technology vs. Eco Animal Health | Sabien Technology vs. United States Steel |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |