Correlation Between Celebrus Technologies and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Celebrus Technologies 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 Celebrus Technologies and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celebrus Technologies plc and Sabre Insurance Group, you can compare the effects of market volatilities on Celebrus Technologies 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 Celebrus Technologies with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebrus Technologies and Sabre Insurance.
Diversification Opportunities for Celebrus Technologies and Sabre Insurance
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celebrus and Sabre is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Celebrus Technologies plc 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 Celebrus Technologies 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 Celebrus Technologies plc 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 Celebrus Technologies i.e., Celebrus Technologies and Sabre Insurance go up and down completely randomly.
Pair Corralation between Celebrus Technologies and Sabre Insurance
Assuming the 90 days trading horizon Celebrus Technologies plc is expected to under-perform the Sabre Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Celebrus Technologies plc is 1.08 times less risky than Sabre Insurance. The stock trades about -0.07 of its potential returns per unit of risk. The Sabre Insurance Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 13,240 in Sabre Insurance Group on September 12, 2024 and sell it today you would earn a total of 560.00 from holding Sabre Insurance Group or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celebrus Technologies plc vs. Sabre Insurance Group
Performance |
| Timeline |
| Celebrus Technologies plc |
| Sabre Insurance Group |
Celebrus Technologies and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celebrus Technologies and Sabre Insurance
The main advantage of trading using opposite Celebrus Technologies and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebrus Technologies 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.| Celebrus Technologies vs. Microlise Group PLC | Celebrus Technologies vs. Spectra Systems Corp | Celebrus Technologies vs. Neometals | Celebrus Technologies vs. Coor Service Management |
| Sabre Insurance vs. Bloomsbury Publishing Plc | Sabre Insurance vs. Molson Coors Beverage | Sabre Insurance vs. METALL ZUG AG | Sabre Insurance vs. Associated British Foods |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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