Correlation Between HYATT HOTELS and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both HYATT HOTELS and Sabre 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 HYATT HOTELS and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HYATT HOTELS A and Sabre Insurance Group, you can compare the effects of market volatilities on HYATT HOTELS and Sabre 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 HYATT HOTELS with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS and Sabre Insurance.
Diversification Opportunities for HYATT HOTELS and Sabre Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HYATT and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A and Sabre Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Insurance Group and HYATT HOTELS 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 HYATT HOTELS A are associated (or correlated) with Sabre Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Insurance Group has no effect on the direction of HYATT HOTELS i.e., HYATT HOTELS and Sabre Insurance go up and down completely randomly.
Pair Corralation between HYATT HOTELS and Sabre Insurance
Assuming the 90 days trading horizon HYATT HOTELS is expected to generate 5.7 times less return on investment than Sabre Insurance. But when comparing it to its historical volatility, HYATT HOTELS A is 1.69 times less risky than Sabre Insurance. It trades about 0.01 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 156.00 in Sabre Insurance Group on October 28, 2024 and sell it today you would earn a total of 3.00 from holding Sabre Insurance Group or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HYATT HOTELS A vs. Sabre Insurance Group
Performance |
| Timeline |
| HYATT HOTELS A |
| Sabre Insurance Group |
HYATT HOTELS and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYATT HOTELS and Sabre Insurance
The main advantage of trading using opposite HYATT HOTELS and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS position performs unexpectedly, Sabre 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 Sabre Insurance will offset losses from the drop in Sabre Insurance's long position.| HYATT HOTELS vs. BW OFFSHORE LTD | HYATT HOTELS vs. PT Wintermar Offshore | HYATT HOTELS vs. Siemens Healthineers AG | HYATT HOTELS vs. EPSILON HEALTHCARE LTD |
| Sabre Insurance vs. DFS Furniture PLC | Sabre Insurance vs. CarsalesCom | Sabre Insurance vs. GRUPO CARSO A1 | Sabre Insurance vs. CENTURIA OFFICE REIT |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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