Correlation Between Sabre Corpo and Contagious Gaming
Can any of the company-specific risk be diversified away by investing in both Sabre Corpo and Contagious Gaming 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 Sabre Corpo and Contagious Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Corpo and Contagious Gaming, you can compare the effects of market volatilities on Sabre Corpo and Contagious Gaming 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 Sabre Corpo with a short position of Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Contagious Gaming.
Diversification Opportunities for Sabre Corpo and Contagious Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming and Sabre Corpo 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 Sabre Corpo are associated (or correlated) with Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of Sabre Corpo i.e., Sabre Corpo and Contagious Gaming go up and down completely randomly.
Pair Corralation between Sabre Corpo and Contagious Gaming
Given the investment horizon of 90 days Sabre Corpo is expected to under-perform the Contagious Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Sabre Corpo is 1.64 times less risky than Contagious Gaming. The stock trades about 0.0 of its potential returns per unit of risk. The Contagious Gaming is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 0.87 in Contagious Gaming on September 2, 2024 and sell it today you would lose (0.65) from holding Contagious Gaming or give up 74.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sabre Corpo vs. Contagious Gaming
Performance |
| Timeline |
| Sabre Corpo |
| Contagious Gaming |
Sabre Corpo and Contagious Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Corpo and Contagious Gaming
The main advantage of trading using opposite Sabre Corpo and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar Corp |
| Contagious Gaming vs. Scandinavian Tobacco Group | Contagious Gaming vs. Allegheny Technologies Incorporated | Contagious Gaming vs. Anheuser Busch Inbev | Contagious Gaming vs. Keurig Dr Pepper |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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