Correlation Between Enstar Group and Sabre
Can any of the company-specific risk be diversified away by investing in both Enstar Group and Sabre 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 Enstar Group and Sabre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enstar Group Ltd and Sabre, you can compare the effects of market volatilities on Enstar Group and Sabre 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 Enstar Group with a short position of Sabre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enstar Group and Sabre.
Diversification Opportunities for Enstar Group and Sabre
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enstar and Sabre is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Enstar Group Ltd and Sabre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre and Enstar Group 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 Enstar Group Ltd are associated (or correlated) with Sabre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre has no effect on the direction of Enstar Group i.e., Enstar Group and Sabre go up and down completely randomly.
Pair Corralation between Enstar Group and Sabre
If you would invest 5,643 in Sabre on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Sabre or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Enstar Group Ltd vs. Sabre
Performance |
| Timeline |
| Enstar Group |
| Sabre |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Enstar Group and Sabre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enstar Group and Sabre
The main advantage of trading using opposite Enstar Group and Sabre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enstar Group position performs unexpectedly, Sabre 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 will offset losses from the drop in Sabre's long position.| Enstar Group vs. Enstar Group Limited | Enstar Group vs. Equitable Holdings | Enstar Group vs. Athene Holding | Enstar Group vs. Athene Holding |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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