Correlation Between Sabre Insurance and Winnebago Industries
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Winnebago Industries 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 Winnebago Industries 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 Winnebago Industries, you can compare the effects of market volatilities on Sabre Insurance and Winnebago Industries 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 Winnebago Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Winnebago Industries.
Diversification Opportunities for Sabre Insurance and Winnebago Industries
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabre and Winnebago is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Winnebago Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winnebago Industries 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 Winnebago Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winnebago Industries has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Winnebago Industries go up and down completely randomly.
Pair Corralation between Sabre Insurance and Winnebago Industries
Assuming the 90 days horizon Sabre Insurance Group is expected to under-perform the Winnebago Industries. But the stock apears to be less risky and, when comparing its historical volatility, Sabre Insurance Group is 1.11 times less risky than Winnebago Industries. The stock trades about -0.13 of its potential returns per unit of risk. The Winnebago Industries is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,685 in Winnebago Industries on November 8, 2024 and sell it today you would lose (25.00) from holding Winnebago Industries or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Sabre Insurance Group vs. Winnebago Industries
Performance |
| Timeline |
| Sabre Insurance Group |
| Winnebago Industries |
Sabre Insurance and Winnebago Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Winnebago Industries
The main advantage of trading using opposite Sabre Insurance and Winnebago Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Winnebago Industries 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 Winnebago Industries will offset losses from the drop in Winnebago Industries' long position.| Sabre Insurance vs. United Rentals | Sabre Insurance vs. UNITED RENTALS | Sabre Insurance vs. Media and Games | Sabre Insurance vs. Air Lease |
| Winnebago Industries vs. Harley Davidson | Winnebago Industries vs. BRP Inc | Winnebago Industries vs. Polaris | Winnebago Industries vs. Fox Factory Holding |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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