Correlation Between Oasis Hotel and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Oasis Hotel 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 Oasis Hotel and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and Sabre Insurance Group, you can compare the effects of market volatilities on Oasis Hotel 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 Oasis Hotel with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and Sabre Insurance.
Diversification Opportunities for Oasis Hotel and Sabre Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oasis and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort 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 Oasis Hotel 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 Oasis Hotel Resort 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 Oasis Hotel i.e., Oasis Hotel and Sabre Insurance go up and down completely randomly.
Pair Corralation between Oasis Hotel and Sabre Insurance
If you would invest 504.00 in Sabre Insurance Group on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Sabre Insurance Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oasis Hotel Resort vs. Sabre Insurance Group
Performance |
| Timeline |
| Oasis Hotel Resort |
| Sabre Insurance Group |
Oasis Hotel and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Hotel and Sabre Insurance
The main advantage of trading using opposite Oasis Hotel and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel 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.| Oasis Hotel vs. Porvair plc | Oasis Hotel vs. Nike Inc | Oasis Hotel vs. Boot Barn Holdings | Oasis Hotel vs. Duluth Holdings |
| Sabre Insurance vs. Kaiser Aluminum | Sabre Insurance vs. Maanshan Iron Steel | Sabre Insurance vs. Century Aluminum | Sabre Insurance vs. Oasis Hotel Resort |
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 CEOs Directory module to screen CEOs from public companies around the world.
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