Correlation Between Gfinity PLC and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Gfinity PLC 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 Gfinity PLC and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gfinity PLC and Sabre Insurance Group, you can compare the effects of market volatilities on Gfinity PLC 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 Gfinity PLC with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfinity PLC and Sabre Insurance.
Diversification Opportunities for Gfinity PLC and Sabre Insurance
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gfinity and Sabre is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gfinity 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 Gfinity PLC 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 Gfinity 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 Gfinity PLC i.e., Gfinity PLC and Sabre Insurance go up and down completely randomly.
Pair Corralation between Gfinity PLC and Sabre Insurance
Assuming the 90 days trading horizon Gfinity PLC is expected to generate 5.27 times more return on investment than Sabre Insurance. However, Gfinity PLC is 5.27 times more volatile than Sabre Insurance Group. It trades about 0.02 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.03 per unit of risk. If you would invest 6.25 in Gfinity PLC on September 12, 2024 and sell it today you would lose (3.05) from holding Gfinity PLC or give up 48.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gfinity PLC vs. Sabre Insurance Group
Performance |
| Timeline |
| Gfinity PLC |
| Sabre Insurance Group |
Gfinity PLC and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfinity PLC and Sabre Insurance
The main advantage of trading using opposite Gfinity PLC and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfinity PLC 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.| Gfinity PLC vs. Sabre Insurance Group | Gfinity PLC vs. National Bank of | Gfinity PLC vs. Team Internet Group | Gfinity PLC vs. Regions Financial 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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