Correlation Between IShares Dow and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both IShares Dow 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 IShares Dow and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Dow Jones and Sabre Insurance Group, you can compare the effects of market volatilities on IShares Dow 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 IShares Dow with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Dow and Sabre Insurance.
Diversification Opportunities for IShares Dow and Sabre Insurance
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and Sabre is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding iShares Dow Jones 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 IShares Dow 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 iShares Dow Jones 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 IShares Dow i.e., IShares Dow and Sabre Insurance go up and down completely randomly.
Pair Corralation between IShares Dow and Sabre Insurance
Assuming the 90 days trading horizon iShares Dow Jones is expected to generate 0.6 times more return on investment than Sabre Insurance. However, iShares Dow Jones is 1.66 times less risky than Sabre Insurance. It trades about 0.24 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about -0.18 per unit of risk. If you would invest 7,300 in iShares Dow Jones on November 4, 2024 and sell it today you would earn a total of 302.00 from holding iShares Dow Jones or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Dow Jones vs. Sabre Insurance Group
Performance |
| Timeline |
| iShares Dow Jones |
| Sabre Insurance Group |
IShares Dow and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Dow and Sabre Insurance
The main advantage of trading using opposite IShares Dow and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Dow 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.| IShares Dow vs. iShares MSCI Japan | IShares Dow vs. iShares JP Morgan | IShares Dow vs. iShares MSCI Europe | IShares Dow vs. iShares Nasdaq Biotechnology |
| Sabre Insurance vs. Auto Trader Group | Sabre Insurance vs. Axway Software SA | Sabre Insurance vs. Westlake Chemical Corp | Sabre Insurance vs. Alfa Financial Software |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |