Correlation Between GAMING FAC and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both GAMING FAC 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 GAMING FAC and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and Sabre Insurance Group, you can compare the effects of market volatilities on GAMING FAC 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 GAMING FAC with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and Sabre Insurance.
Diversification Opportunities for GAMING FAC and Sabre Insurance
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between GAMING and Sabre is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA 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 GAMING FAC 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 GAMING FAC SA 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 GAMING FAC i.e., GAMING FAC and Sabre Insurance go up and down completely randomly.
Pair Corralation between GAMING FAC and Sabre Insurance
Assuming the 90 days horizon GAMING FAC SA is expected to generate 1.12 times more return on investment than Sabre Insurance. However, GAMING FAC is 1.12 times more volatile than Sabre Insurance Group. It trades about 0.18 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.0 per unit of risk. If you would invest 161.00 in GAMING FAC SA on October 11, 2024 and sell it today you would earn a total of 13.00 from holding GAMING FAC SA or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMING FAC SA vs. Sabre Insurance Group
Performance |
| Timeline |
| GAMING FAC SA |
| Sabre Insurance Group |
GAMING FAC and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and Sabre Insurance
The main advantage of trading using opposite GAMING FAC and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC 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.| GAMING FAC vs. CARDINAL HEALTH | GAMING FAC vs. OPKO HEALTH | GAMING FAC vs. Platinum Investment Management | GAMING FAC vs. Ares Management Corp |
| Sabre Insurance vs. International Game Technology | Sabre Insurance vs. PENN NATL GAMING | Sabre Insurance vs. JD SPORTS FASH | Sabre Insurance vs. GAMING FAC SA |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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