Correlation Between Sabra Health and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both Sabra Health and EVS Broadcast 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 EVS Broadcast 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 EVS Broadcast Equipment, you can compare the effects of market volatilities on Sabra Health and EVS Broadcast 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 EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and EVS Broadcast.
Diversification Opportunities for Sabra Health and EVS Broadcast
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sabra and EVS is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment 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 EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of Sabra Health i.e., Sabra Health and EVS Broadcast go up and down completely randomly.
Pair Corralation between Sabra Health and EVS Broadcast
Assuming the 90 days horizon Sabra Health Care is expected to generate 1.89 times more return on investment than EVS Broadcast. However, Sabra Health is 1.89 times more volatile than EVS Broadcast Equipment. It trades about 0.13 of its potential returns per unit of risk. EVS Broadcast Equipment is currently generating about -0.11 per unit of risk. If you would invest 1,590 in Sabra Health Care on October 21, 2024 and sell it today you would earn a total of 62.00 from holding Sabra Health Care or generate 3.9% 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. EVS Broadcast Equipment
Performance |
| Timeline |
| Sabra Health Care |
| EVS Broadcast Equipment |
Sabra Health and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and EVS Broadcast
The main advantage of trading using opposite Sabra Health and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast's long position.| Sabra Health vs. Addtech AB | Sabra Health vs. JLF INVESTMENT | Sabra Health vs. Kingdee International Software | Sabra Health vs. Sunny Optical Technology |
| EVS Broadcast vs. SIDETRADE EO 1 | EVS Broadcast vs. ETFS Coffee ETC | EVS Broadcast vs. INDOFOOD AGRI RES | EVS Broadcast vs. AUTO TRADER ADR |
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.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |