Correlation Between BROADPEAK and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both BROADPEAK 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 BROADPEAK and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADPEAK SA EO and Sabre Insurance Group, you can compare the effects of market volatilities on BROADPEAK 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 BROADPEAK with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADPEAK and Sabre Insurance.
Diversification Opportunities for BROADPEAK and Sabre Insurance
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BROADPEAK and Sabre is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding BROADPEAK SA EO 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 BROADPEAK 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 BROADPEAK SA EO 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 BROADPEAK i.e., BROADPEAK and Sabre Insurance go up and down completely randomly.
Pair Corralation between BROADPEAK and Sabre Insurance
Assuming the 90 days horizon BROADPEAK SA EO is expected to generate 1.08 times more return on investment than Sabre Insurance. However, BROADPEAK is 1.08 times more volatile than Sabre Insurance Group. It trades about 0.22 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about -0.13 per unit of risk. If you would invest 100.00 in BROADPEAK SA EO on December 16, 2024 and sell it today you would earn a total of 16.00 from holding BROADPEAK SA EO or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BROADPEAK SA EO vs. Sabre Insurance Group
Performance |
| Timeline |
| BROADPEAK SA EO |
| Sabre Insurance Group |
BROADPEAK and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROADPEAK and Sabre Insurance
The main advantage of trading using opposite BROADPEAK and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADPEAK 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.| BROADPEAK vs. The Boston Beer | ||
| BROADPEAK vs. China Resources Beer | ||
| BROADPEAK vs. MELIA HOTELS | ||
| BROADPEAK vs. United Breweries Co |
| Sabre Insurance vs. SAFEROADS HLDGS | ||
| Sabre Insurance vs. BROADPEAK SA EO | ||
| Sabre Insurance vs. NTG Nordic Transport | ||
| Sabre Insurance vs. GOLD ROAD RES |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |