Correlation Between Sabre Insurance and NorAm Drilling
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and NorAm Drilling 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 NorAm Drilling 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 NorAm Drilling AS, you can compare the effects of market volatilities on Sabre Insurance and NorAm Drilling 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 NorAm Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and NorAm Drilling.
Diversification Opportunities for Sabre Insurance and NorAm Drilling
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sabre and NorAm is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and NorAm Drilling AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NorAm Drilling AS 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 NorAm Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NorAm Drilling AS has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and NorAm Drilling go up and down completely randomly.
Pair Corralation between Sabre Insurance and NorAm Drilling
Assuming the 90 days horizon Sabre Insurance Group is expected to generate 0.38 times more return on investment than NorAm Drilling. However, Sabre Insurance Group is 2.63 times less risky than NorAm Drilling. It trades about 0.0 of its potential returns per unit of risk. NorAm Drilling AS is currently generating about -0.01 per unit of risk. If you would invest 169.00 in Sabre Insurance Group on October 11, 2024 and sell it today you would lose (1.00) from holding Sabre Insurance Group or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Sabre Insurance Group vs. NorAm Drilling AS
Performance |
| Timeline |
| Sabre Insurance Group |
| NorAm Drilling AS |
Sabre Insurance and NorAm Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and NorAm Drilling
The main advantage of trading using opposite Sabre Insurance and NorAm Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, NorAm Drilling 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 NorAm Drilling will offset losses from the drop in NorAm Drilling's long position.| Sabre Insurance vs. International Game Technology | Sabre Insurance vs. PENN NATL GAMING | Sabre Insurance vs. JD SPORTS FASH | Sabre Insurance vs. GAMING FAC SA |
| NorAm Drilling vs. Calibre Mining Corp | NorAm Drilling vs. ADRIATIC METALS LS 013355 | NorAm Drilling vs. Cairo Communication SpA | NorAm Drilling vs. Entravision Communications |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |