Correlation Between Sabre Insurance and SCIENCE IN
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and SCIENCE IN 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 Sabre Insurance and SCIENCE IN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Insurance Group and SCIENCE IN SPORT, you can compare the effects of market volatilities on Sabre Insurance and SCIENCE IN 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 Sabre Insurance with a short position of SCIENCE IN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and SCIENCE IN.
Diversification Opportunities for Sabre Insurance and SCIENCE IN
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and SCIENCE is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and SCIENCE IN SPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCIENCE IN SPORT and Sabre Insurance 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 Sabre Insurance Group are associated (or correlated) with SCIENCE IN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCIENCE IN SPORT has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and SCIENCE IN go up and down completely randomly.
Pair Corralation between Sabre Insurance and SCIENCE IN
Assuming the 90 days horizon Sabre Insurance is expected to generate 16.19 times less return on investment than SCIENCE IN. But when comparing it to its historical volatility, Sabre Insurance Group is 1.77 times less risky than SCIENCE IN. It trades about 0.01 of its potential returns per unit of risk. SCIENCE IN SPORT is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 12.00 in SCIENCE IN SPORT on August 27, 2024 and sell it today you would earn a total of 17.00 from holding SCIENCE IN SPORT or generate 141.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. SCIENCE IN SPORT
Performance |
| Timeline |
| Sabre Insurance Group |
| SCIENCE IN SPORT |
Sabre Insurance and SCIENCE IN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and SCIENCE IN
The main advantage of trading using opposite Sabre Insurance and SCIENCE IN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, SCIENCE IN 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 SCIENCE IN will offset losses from the drop in SCIENCE IN's long position.| Sabre Insurance vs. Superior Plus Corp | Sabre Insurance vs. NMI Holdings | Sabre Insurance vs. Origin Agritech | Sabre Insurance vs. SIVERS SEMICONDUCTORS AB |
| SCIENCE IN vs. Superior Plus Corp | SCIENCE IN vs. NMI Holdings | SCIENCE IN vs. Origin Agritech | SCIENCE IN vs. SIVERS SEMICONDUCTORS AB |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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