Correlation Between Celebrus Technologies and Sabien Technology
Can any of the company-specific risk be diversified away by investing in both Celebrus Technologies and Sabien Technology 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 Sabien Technology 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 Sabien Technology Group, you can compare the effects of market volatilities on Celebrus Technologies and Sabien Technology 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 Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebrus Technologies and Sabien Technology.
Diversification Opportunities for Celebrus Technologies and Sabien Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Celebrus and Sabien is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Celebrus Technologies plc and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology 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 Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of Celebrus Technologies i.e., Celebrus Technologies and Sabien Technology go up and down completely randomly.
Pair Corralation between Celebrus Technologies and Sabien Technology
Assuming the 90 days trading horizon Celebrus Technologies plc is expected to generate 0.54 times more return on investment than Sabien Technology. However, Celebrus Technologies plc is 1.85 times less risky than Sabien Technology. It trades about 0.19 of its potential returns per unit of risk. Sabien Technology Group is currently generating about 0.04 per unit of risk. If you would invest 27,500 in Celebrus Technologies plc on September 2, 2024 and sell it today you would earn a total of 2,750 from holding Celebrus Technologies plc or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celebrus Technologies plc vs. Sabien Technology Group
Performance |
| Timeline |
| Celebrus Technologies plc |
| Sabien Technology |
Celebrus Technologies and Sabien Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celebrus Technologies and Sabien Technology
The main advantage of trading using opposite Celebrus Technologies and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebrus Technologies position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology's long position.| Celebrus Technologies vs. GB Group plc | Celebrus Technologies vs. Dotdigital Group Plc | Celebrus Technologies vs. Tracsis Plc | Celebrus Technologies vs. Microlise Group PLC |
| Sabien Technology vs. Samsung Electronics Co | Sabien Technology vs. Samsung Electronics Co | Sabien Technology vs. Hyundai Motor | Sabien Technology vs. Toyota Motor 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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