Correlation Between NYSE Composite and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Sabre Insurance Group, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Sabre Insurance.
Diversification Opportunities for NYSE Composite and Sabre Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Sabre Insurance go up and down completely randomly.
Pair Corralation between NYSE Composite and Sabre Insurance
If you would invest 1,920,711 in NYSE Composite on October 23, 2024 and sell it today you would earn a total of 40,026 from holding NYSE Composite or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Sabre Insurance Group
Performance |
| Timeline |
NYSE Composite and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Sabre Insurance Group
Pair trading matchups for Sabre Insurance
Pair Trading with NYSE Composite and Sabre Insurance
The main advantage of trading using opposite NYSE Composite and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. IPG Photonics | NYSE Composite vs. Summit Materials | NYSE Composite vs. NetSol Technologies | NYSE Composite vs. Bill Com Holdings |
| Sabre Insurance vs. Nexstar Broadcasting Group | Sabre Insurance vs. Sonos Inc | Sabre Insurance vs. Academy Sports Outdoors | Sabre Insurance vs. Stratasys |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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