Correlation Between EAT WELL and Sabra Health
Can any of the company-specific risk be diversified away by investing in both EAT WELL and Sabra Health 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 EAT WELL and Sabra Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAT WELL INVESTMENT and Sabra Health Care, you can compare the effects of market volatilities on EAT WELL and Sabra Health 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 EAT WELL with a short position of Sabra Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAT WELL and Sabra Health.
Diversification Opportunities for EAT WELL and Sabra Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EAT and Sabra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAT WELL INVESTMENT and Sabra Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Health Care and EAT WELL 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 EAT WELL INVESTMENT are associated (or correlated) with Sabra Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Health Care has no effect on the direction of EAT WELL i.e., EAT WELL and Sabra Health go up and down completely randomly.
Pair Corralation between EAT WELL and Sabra Health
If you would invest 1,685 in Sabra Health Care on August 24, 2024 and sell it today you would earn a total of 64.00 from holding Sabra Health Care or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
EAT WELL INVESTMENT vs. Sabra Health Care
Performance |
| Timeline |
| EAT WELL INVESTMENT |
| Sabra Health Care |
EAT WELL and Sabra Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAT WELL and Sabra Health
The main advantage of trading using opposite EAT WELL and Sabra Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAT WELL position performs unexpectedly, Sabra Health 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 Sabra Health will offset losses from the drop in Sabra Health's long position.| EAT WELL vs. ARDAGH METAL PACDL 0001 | EAT WELL vs. Jacquet Metal Service | EAT WELL vs. GRIFFIN MINING LTD | EAT WELL vs. KENNAMETAL INC |
| Sabra Health vs. REINET INVESTMENTS SCA | Sabra Health vs. EAT WELL INVESTMENT | Sabra Health vs. Genco Shipping Trading | Sabra Health vs. ECHO INVESTMENT ZY |
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.
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