Correlation Between SIVERS SEMICONDUCTORS and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and Sabre Insurance Group, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Sabre Insurance.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Sabre Insurance
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SIVERS and Sabre is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB 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 SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB 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 SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Sabre Insurance go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Sabre Insurance
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Sabre Insurance. In addition to that, SIVERS SEMICONDUCTORS is 2.28 times more volatile than Sabre Insurance Group. It trades about -0.02 of its total potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.04 per unit of volatility. If you would invest 114.00 in Sabre Insurance Group on August 30, 2024 and sell it today you would earn a total of 42.00 from holding Sabre Insurance Group or generate 36.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Sabre Insurance Group
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Sabre Insurance Group |
SIVERS SEMICONDUCTORS and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Sabre Insurance
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS 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.| SIVERS SEMICONDUCTORS vs. Mitsubishi Gas Chemical | SIVERS SEMICONDUCTORS vs. Sunny Optical Technology | SIVERS SEMICONDUCTORS vs. Align Technology | SIVERS SEMICONDUCTORS vs. Micron Technology |
| Sabre Insurance vs. LANDSEA HOMES P | Sabre Insurance vs. Beazer Homes USA | Sabre Insurance vs. Taylor Morrison Home | Sabre Insurance vs. Haverty Furniture Companies |
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 Stocks Directory module to find actively traded stocks across global markets.
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