Correlation Between Aldel Financial and Sabre Corpo
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Sabre Corpo 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 Aldel Financial and Sabre Corpo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Sabre Corpo, you can compare the effects of market volatilities on Aldel Financial and Sabre Corpo 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 Aldel Financial with a short position of Sabre Corpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Sabre Corpo.
Diversification Opportunities for Aldel Financial and Sabre Corpo
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aldel and Sabre is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Sabre Corpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Corpo and Aldel Financial 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 Aldel Financial II are associated (or correlated) with Sabre Corpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Corpo has no effect on the direction of Aldel Financial i.e., Aldel Financial and Sabre Corpo go up and down completely randomly.
Pair Corralation between Aldel Financial and Sabre Corpo
Assuming the 90 days horizon Aldel Financial is expected to generate 13.52 times less return on investment than Sabre Corpo. But when comparing it to its historical volatility, Aldel Financial II is 49.99 times less risky than Sabre Corpo. It trades about 0.04 of its potential returns per unit of risk. Sabre Corpo is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 375.00 in Sabre Corpo on August 24, 2024 and sell it today you would lose (8.00) from holding Sabre Corpo or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aldel Financial II vs. Sabre Corpo
Performance |
| Timeline |
| Aldel Financial II |
| Sabre Corpo |
Aldel Financial and Sabre Corpo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Sabre Corpo
The main advantage of trading using opposite Aldel Financial and Sabre Corpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Sabre Corpo 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 Corpo will offset losses from the drop in Sabre Corpo's long position.| Aldel Financial vs. Voyager Acquisition Corp | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I | Aldel Financial vs. YHN Acquisition I |
| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar Corp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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