Correlation Between Sabre Insurance and REVO INSURANCE
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and REVO 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 Sabre Insurance and REVO INSURANCE 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 REVO INSURANCE SPA, you can compare the effects of market volatilities on Sabre Insurance and REVO 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 Sabre Insurance with a short position of REVO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and REVO INSURANCE.
Diversification Opportunities for Sabre Insurance and REVO INSURANCE
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabre and REVO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and REVO INSURANCE SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REVO INSURANCE SPA 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 REVO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REVO INSURANCE SPA has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and REVO INSURANCE go up and down completely randomly.
Pair Corralation between Sabre Insurance and REVO INSURANCE
Assuming the 90 days horizon Sabre Insurance is expected to generate 1.19 times less return on investment than REVO INSURANCE. In addition to that, Sabre Insurance is 1.4 times more volatile than REVO INSURANCE SPA. It trades about 0.21 of its total potential returns per unit of risk. REVO INSURANCE SPA is currently generating about 0.35 per unit of volatility. If you would invest 1,045 in REVO INSURANCE SPA on September 25, 2024 and sell it today you would earn a total of 110.00 from holding REVO INSURANCE SPA or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sabre Insurance Group vs. REVO INSURANCE SPA
Performance |
| Timeline |
| Sabre Insurance Group |
| REVO INSURANCE SPA |
Sabre Insurance and REVO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and REVO INSURANCE
The main advantage of trading using opposite Sabre Insurance and REVO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, REVO 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 REVO INSURANCE will offset losses from the drop in REVO INSURANCE's long position.| Sabre Insurance vs. Marsh McLennan Companies | Sabre Insurance vs. Aon PLC | Sabre Insurance vs. Arthur J Gallagher | Sabre Insurance vs. Willis Towers Watson |
| REVO INSURANCE vs. The Travelers Companies | REVO INSURANCE vs. Atea ASA | REVO INSURANCE vs. ATHENE HOLDING PRFSERC | REVO INSURANCE vs. CLOUDFLARE INC A |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |