Correlation Between Ecclesiastical Insurance and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Ecclesiastical Insurance 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 Ecclesiastical Insurance and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecclesiastical Insurance Office and Sabre Insurance Group, you can compare the effects of market volatilities on Ecclesiastical Insurance 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 Ecclesiastical Insurance with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecclesiastical Insurance and Sabre Insurance.
Diversification Opportunities for Ecclesiastical Insurance and Sabre Insurance
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ecclesiastical and Sabre is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ecclesiastical Insurance Offic 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 Ecclesiastical Insurance 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 Ecclesiastical Insurance Office 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 Ecclesiastical Insurance i.e., Ecclesiastical Insurance and Sabre Insurance go up and down completely randomly.
Pair Corralation between Ecclesiastical Insurance and Sabre Insurance
Assuming the 90 days trading horizon Ecclesiastical Insurance Office is expected to under-perform the Sabre Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Ecclesiastical Insurance Office is 1.43 times less risky than Sabre Insurance. The stock trades about -0.02 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecclesiastical Insurance Offic vs. Sabre Insurance Group
Performance |
| Timeline |
| Ecclesiastical Insurance |
| Sabre Insurance Group |
Ecclesiastical Insurance and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecclesiastical Insurance and Sabre Insurance
The main advantage of trading using opposite Ecclesiastical Insurance and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecclesiastical Insurance 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.| Ecclesiastical Insurance vs. Samsung Electronics Co | Ecclesiastical Insurance vs. Samsung Electronics Co | Ecclesiastical Insurance vs. Hyundai Motor | Ecclesiastical Insurance vs. Toyota Motor Corp |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |