Correlation Between Sabra Health and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both Sabra Health and MAVEN WIRELESS 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on Sabra Health and MAVEN WIRELESS 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and MAVEN WIRELESS.
Diversification Opportunities for Sabra Health and MAVEN WIRELESS
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sabra and MAVEN is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of Sabra Health i.e., Sabra Health and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between Sabra Health and MAVEN WIRELESS
Assuming the 90 days horizon Sabra Health Care is expected to generate 0.51 times more return on investment than MAVEN WIRELESS. However, Sabra Health Care is 1.95 times less risky than MAVEN WIRELESS. It trades about 0.17 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about -0.13 per unit of risk. If you would invest 1,267 in Sabra Health Care on August 28, 2024 and sell it today you would earn a total of 478.00 from holding Sabra Health Care or generate 37.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Sabra Health Care vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| Sabra Health Care |
| MAVEN WIRELESS SWEDEN |
Sabra Health and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and MAVEN WIRELESS
The main advantage of trading using opposite Sabra Health and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| Sabra Health vs. CENTURIA OFFICE REIT | Sabra Health vs. Infrastrutture Wireless Italiane | Sabra Health vs. TITANIUM TRANSPORTGROUP | Sabra Health vs. KAUFMAN ET BROAD |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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