Correlation Between NORDIC HALIBUT and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT 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 NORDIC HALIBUT and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORDIC HALIBUT AS and Sabre Insurance Group, you can compare the effects of market volatilities on NORDIC HALIBUT 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 NORDIC HALIBUT with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Sabre Insurance.
Diversification Opportunities for NORDIC HALIBUT and Sabre Insurance
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NORDIC and Sabre is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS 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 NORDIC HALIBUT 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 NORDIC HALIBUT AS 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 NORDIC HALIBUT i.e., NORDIC HALIBUT and Sabre Insurance go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Sabre Insurance
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Sabre Insurance. In addition to that, NORDIC HALIBUT is 1.77 times more volatile than Sabre Insurance Group. It trades about -0.25 of its total potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.18 per unit of volatility. If you would invest 158.00 in Sabre Insurance Group on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Sabre Insurance Group or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Sabre Insurance Group
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Sabre Insurance Group |
NORDIC HALIBUT and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Sabre Insurance
The main advantage of trading using opposite NORDIC HALIBUT and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT 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.| NORDIC HALIBUT vs. HEALTHCARE REAL A | NORDIC HALIBUT vs. ANTA SPORTS PRODUCT | NORDIC HALIBUT vs. Big 5 Sporting | NORDIC HALIBUT vs. ATRYS HEALTH SA |
| Sabre Insurance vs. Superior Plus Corp | Sabre Insurance vs. SIVERS SEMICONDUCTORS AB | Sabre Insurance vs. CHINA HUARONG ENERHD 50 | Sabre Insurance vs. NORDIC HALIBUT AS |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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