Correlation Between Catalyst Media and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Catalyst Media 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 Catalyst Media and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Media Group and Sabre Insurance Group, you can compare the effects of market volatilities on Catalyst Media 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 Catalyst Media with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Sabre Insurance.
Diversification Opportunities for Catalyst Media and Sabre Insurance
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Sabre is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group 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 Catalyst Media 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 Catalyst Media Group 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 Catalyst Media i.e., Catalyst Media and Sabre Insurance go up and down completely randomly.
Pair Corralation between Catalyst Media and Sabre Insurance
Assuming the 90 days trading horizon Catalyst Media is expected to generate 98.75 times less return on investment than Sabre Insurance. But when comparing it to its historical volatility, Catalyst Media Group is 1.02 times less risky than Sabre Insurance. It trades about 0.0 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,533 in Sabre Insurance Group on August 30, 2024 and sell it today you would earn a total of 3,507 from holding Sabre Insurance Group or generate 36.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Catalyst Media Group vs. Sabre Insurance Group
Performance |
| Timeline |
| Catalyst Media Group |
| Sabre Insurance Group |
Catalyst Media and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Sabre Insurance
The main advantage of trading using opposite Catalyst Media and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media 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.| Catalyst Media vs. Hyundai Motor | Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. SoftBank Group Corp | Catalyst Media vs. Halyk Bank of |
| Sabre Insurance vs. Samsung Electronics Co | Sabre Insurance vs. Samsung Electronics Co | Sabre Insurance vs. Toyota Motor Corp | Sabre Insurance vs. Reliance Industries Ltd |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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