Correlation Between Academy Sports and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Academy Sports 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 Academy Sports and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Academy Sports Outdoors and Sabre Insurance Group, you can compare the effects of market volatilities on Academy Sports 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 Academy Sports with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Sabre Insurance.
Diversification Opportunities for Academy Sports and Sabre Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Academy and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors 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 Academy Sports 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 Academy Sports Outdoors 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 Academy Sports i.e., Academy Sports and Sabre Insurance go up and down completely randomly.
Pair Corralation between Academy Sports and Sabre Insurance
Considering the 90-day investment horizon Academy Sports Outdoors is expected to under-perform the Sabre Insurance. In addition to that, Academy Sports is 8.23 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 0.08 per unit of volatility. If you would invest 476.00 in Sabre Insurance Group on November 3, 2024 and sell it today you would earn a total of 28.00 from holding Sabre Insurance Group or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Academy Sports Outdoors vs. Sabre Insurance Group
Performance |
| Timeline |
| Academy Sports Outdoors |
| Sabre Insurance Group |
Academy Sports and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and Sabre Insurance
The main advantage of trading using opposite Academy Sports and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports 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.| Academy Sports vs. Williams Sonoma | Academy Sports vs. AutoZone | Academy Sports vs. Ulta Beauty | Academy Sports vs. Best Buy Co |
| Sabre Insurance vs. Pekin Life Insurance | Sabre Insurance vs. Radian Group | Sabre Insurance vs. Bowhead Specialty Holdings | Sabre Insurance vs. Western Digital |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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