Correlation Between Sabra Health and ACCSYS TECHPLC
Can any of the company-specific risk be diversified away by investing in both Sabra Health and ACCSYS TECHPLC 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 Sabra Health and ACCSYS TECHPLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabra Health Care and ACCSYS TECHPLC EO, you can compare the effects of market volatilities on Sabra Health and ACCSYS TECHPLC 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 Sabra Health with a short position of ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and ACCSYS TECHPLC.
Diversification Opportunities for Sabra Health and ACCSYS TECHPLC
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sabra and ACCSYS is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and Sabra Health 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 Sabra Health Care are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of Sabra Health i.e., Sabra Health and ACCSYS TECHPLC go up and down completely randomly.
Pair Corralation between Sabra Health and ACCSYS TECHPLC
Assuming the 90 days horizon Sabra Health Care is expected to generate 0.66 times more return on investment than ACCSYS TECHPLC. However, Sabra Health Care is 1.51 times less risky than ACCSYS TECHPLC. It trades about 0.05 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about -0.01 per unit of risk. If you would invest 1,758 in Sabra Health Care on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Sabra Health Care or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Health Care vs. ACCSYS TECHPLC EO
Performance |
| Timeline |
| Sabra Health Care |
| ACCSYS TECHPLC EO |
Sabra Health and ACCSYS TECHPLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and ACCSYS TECHPLC
The main advantage of trading using opposite Sabra Health and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, ACCSYS TECHPLC 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 ACCSYS TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.| Sabra Health vs. Hanison Construction Holdings | Sabra Health vs. UNITED UTILITIES GR | Sabra Health vs. NORTHEAST UTILITIES | Sabra Health vs. Hitachi Construction Machinery |
| ACCSYS TECHPLC vs. Sabra Health Care | ACCSYS TECHPLC vs. Bumrungrad Hospital Public | ACCSYS TECHPLC vs. REGAL ASIAN INVESTMENTS | ACCSYS TECHPLC vs. SEI INVESTMENTS |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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