Correlation Between Atalaya Mining and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining 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 Atalaya Mining and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Sabre Insurance Group, you can compare the effects of market volatilities on Atalaya Mining 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 Atalaya Mining with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Sabre Insurance.
Diversification Opportunities for Atalaya Mining and Sabre Insurance
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atalaya and Sabre is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining 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 Atalaya Mining 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 Atalaya Mining 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 Atalaya Mining i.e., Atalaya Mining and Sabre Insurance go up and down completely randomly.
Pair Corralation between Atalaya Mining and Sabre Insurance
Assuming the 90 days trading horizon Atalaya Mining is expected to under-perform the Sabre Insurance. In addition to that, Atalaya Mining is 1.2 times more volatile than Sabre Insurance Group. It trades about -0.11 of its total potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.02 per unit of volatility. If you would invest 13,000 in Sabre Insurance Group on August 30, 2024 and sell it today you would earn a total of 40.00 from holding Sabre Insurance Group or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atalaya Mining vs. Sabre Insurance Group
Performance |
| Timeline |
| Atalaya Mining |
| Sabre Insurance Group |
Atalaya Mining and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Sabre Insurance
The main advantage of trading using opposite Atalaya Mining and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining 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.The idea behind Atalaya Mining and Sabre Insurance Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sabre Insurance vs. Toyota Motor Corp | Sabre Insurance vs. Neometals | Sabre Insurance vs. Coor Service Management | Sabre Insurance vs. Jupiter Fund Management |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |