Correlation Between Mineral Financial and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Mineral Financial 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 Mineral Financial and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mineral Financial Investments and Sabre Insurance Group, you can compare the effects of market volatilities on Mineral Financial 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 Mineral Financial with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mineral Financial and Sabre Insurance.
Diversification Opportunities for Mineral Financial and Sabre Insurance
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mineral and Sabre is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mineral Financial Investments 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 Mineral Financial 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 Mineral Financial Investments 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 Mineral Financial i.e., Mineral Financial and Sabre Insurance go up and down completely randomly.
Pair Corralation between Mineral Financial and Sabre Insurance
Assuming the 90 days trading horizon Mineral Financial Investments is expected to generate 1.7 times more return on investment than Sabre Insurance. However, Mineral Financial is 1.7 times more volatile than Sabre Insurance Group. It trades about 0.05 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about -0.01 per unit of risk. If you would invest 1,175 in Mineral Financial Investments on November 7, 2024 and sell it today you would earn a total of 300.00 from holding Mineral Financial Investments or generate 25.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mineral Financial Investments vs. Sabre Insurance Group
Performance |
| Timeline |
| Mineral Financial |
| Sabre Insurance Group |
Mineral Financial and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mineral Financial and Sabre Insurance
The main advantage of trading using opposite Mineral Financial and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mineral Financial 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.| Mineral Financial vs. Arrow Electronics | Mineral Financial vs. Waste Management | Mineral Financial vs. Gaming Realms plc | Mineral Financial vs. Auto Trader Group |
| Sabre Insurance vs. Aeorema Communications Plc | Sabre Insurance vs. Capital Drilling | Sabre Insurance vs. Global Net Lease | Sabre Insurance vs. Premier Foods PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |