Correlation Between Garmin and Sobr Safe
Can any of the company-specific risk be diversified away by investing in both Garmin and Sobr Safe 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 Garmin and Sobr Safe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garmin and Sobr Safe, you can compare the effects of market volatilities on Garmin and Sobr Safe 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 Garmin with a short position of Sobr Safe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garmin and Sobr Safe.
Diversification Opportunities for Garmin and Sobr Safe
Very good diversification
The 3 months correlation between Garmin and Sobr is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Garmin and Sobr Safe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobr Safe and Garmin 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 Garmin are associated (or correlated) with Sobr Safe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobr Safe has no effect on the direction of Garmin i.e., Garmin and Sobr Safe go up and down completely randomly.
Pair Corralation between Garmin and Sobr Safe
Given the investment horizon of 90 days Garmin is expected to generate 0.14 times more return on investment than Sobr Safe. However, Garmin is 6.93 times less risky than Sobr Safe. It trades about 0.1 of its potential returns per unit of risk. Sobr Safe is currently generating about -0.04 per unit of risk. If you would invest 9,350 in Garmin on November 2, 2024 and sell it today you would earn a total of 12,338 from holding Garmin or generate 131.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garmin vs. Sobr Safe
Performance |
| Timeline |
| Garmin |
| Sobr Safe |
Garmin and Sobr Safe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garmin and Sobr Safe
The main advantage of trading using opposite Garmin and Sobr Safe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garmin position performs unexpectedly, Sobr Safe 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 Sobr Safe will offset losses from the drop in Sobr Safe's long position.| Garmin vs. Vontier Corp | Garmin vs. Teledyne Technologies Incorporated | Garmin vs. ESCO Technologies | Garmin vs. MKS Instruments |
| Sobr Safe vs. Mind Technology | Sobr Safe vs. SaverOne 2014 Ltd | Sobr Safe vs. SaverOne 2014 Ltd | Sobr Safe vs. Fortive 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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