Correlation Between Sabra Health and Adesso SE
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By analyzing existing cross correlation between Sabra Health Care and Adesso SE, you can compare the effects of market volatilities on Sabra Health and Adesso SE 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 Adesso SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and Adesso SE.
Diversification Opportunities for Sabra Health and Adesso SE
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sabra and Adesso is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and Adesso SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adesso SE 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 Adesso SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adesso SE has no effect on the direction of Sabra Health i.e., Sabra Health and Adesso SE go up and down completely randomly.
Pair Corralation between Sabra Health and Adesso SE
Assuming the 90 days horizon Sabra Health is expected to generate 5.08 times less return on investment than Adesso SE. But when comparing it to its historical volatility, Sabra Health Care is 2.55 times less risky than Adesso SE. It trades about 0.06 of its potential returns per unit of risk. Adesso SE is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 7,810 in Adesso SE on September 13, 2024 and sell it today you would earn a total of 1,710 from holding Adesso SE or generate 21.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Health Care vs. Adesso SE
Performance |
| Timeline |
| Sabra Health Care |
| Adesso SE |
Sabra Health and Adesso SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and Adesso SE
The main advantage of trading using opposite Sabra Health and Adesso SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, Adesso SE 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 Adesso SE will offset losses from the drop in Adesso SE's long position.| Sabra Health vs. NORWEGIAN AIR SHUT | Sabra Health vs. Sekisui Chemical Co | Sabra Health vs. Altair Engineering | Sabra Health vs. AIR PRODCHEMICALS |
| Adesso SE vs. Performance Food Group | Adesso SE vs. Check Point Software | Adesso SE vs. DXC Technology Co | Adesso SE vs. Tyson Foods |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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