Correlation Between Sabio Holdings and PropertyGuru
Can any of the company-specific risk be diversified away by investing in both Sabio Holdings and PropertyGuru 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 Sabio Holdings and PropertyGuru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabio Holdings and PropertyGuru Group, you can compare the effects of market volatilities on Sabio Holdings and PropertyGuru 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 Sabio Holdings with a short position of PropertyGuru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabio Holdings and PropertyGuru.
Diversification Opportunities for Sabio Holdings and PropertyGuru
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sabio and PropertyGuru is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sabio Holdings and PropertyGuru Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PropertyGuru Group and Sabio Holdings 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 Sabio Holdings are associated (or correlated) with PropertyGuru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PropertyGuru Group has no effect on the direction of Sabio Holdings i.e., Sabio Holdings and PropertyGuru go up and down completely randomly.
Pair Corralation between Sabio Holdings and PropertyGuru
Assuming the 90 days horizon Sabio Holdings is expected to generate 39.57 times more return on investment than PropertyGuru. However, Sabio Holdings is 39.57 times more volatile than PropertyGuru Group. It trades about 0.01 of its potential returns per unit of risk. PropertyGuru Group is currently generating about 0.16 per unit of risk. If you would invest 37.00 in Sabio Holdings on October 26, 2024 and sell it today you would lose (2.00) from holding Sabio Holdings or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 56.45% |
| Values | Daily Returns |
Sabio Holdings vs. PropertyGuru Group
Performance |
| Timeline |
| Sabio Holdings |
| PropertyGuru Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Sabio Holdings and PropertyGuru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabio Holdings and PropertyGuru
The main advantage of trading using opposite Sabio Holdings and PropertyGuru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabio Holdings position performs unexpectedly, PropertyGuru 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 PropertyGuru will offset losses from the drop in PropertyGuru's long position.| Sabio Holdings vs. Tinybeans Group Limited | Sabio Holdings vs. DGTL Holdings | Sabio Holdings vs. Zoomd Technologies | Sabio Holdings vs. Quizam Media |
| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International Holdings |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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