Correlation Between Sabra Health and CLEAR CHANNEL
Can any of the company-specific risk be diversified away by investing in both Sabra Health and CLEAR CHANNEL 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 CLEAR CHANNEL 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 CLEAR CHANNEL OHA, you can compare the effects of market volatilities on Sabra Health and CLEAR CHANNEL 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 CLEAR CHANNEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and CLEAR CHANNEL.
Diversification Opportunities for Sabra Health and CLEAR CHANNEL
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sabra and CLEAR is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and CLEAR CHANNEL OHA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLEAR CHANNEL OHA 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 CLEAR CHANNEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLEAR CHANNEL OHA has no effect on the direction of Sabra Health i.e., Sabra Health and CLEAR CHANNEL go up and down completely randomly.
Pair Corralation between Sabra Health and CLEAR CHANNEL
Assuming the 90 days horizon Sabra Health Care is expected to generate 0.66 times more return on investment than CLEAR CHANNEL. However, Sabra Health Care is 1.5 times less risky than CLEAR CHANNEL. It trades about -0.26 of its potential returns per unit of risk. CLEAR CHANNEL OHA is currently generating about -0.26 per unit of risk. If you would invest 1,740 in Sabra Health Care on September 22, 2024 and sell it today you would lose (120.00) from holding Sabra Health Care or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Health Care vs. CLEAR CHANNEL OHA
Performance |
| Timeline |
| Sabra Health Care |
| CLEAR CHANNEL OHA |
Sabra Health and CLEAR CHANNEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and CLEAR CHANNEL
The main advantage of trading using opposite Sabra Health and CLEAR CHANNEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, CLEAR CHANNEL 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 CLEAR CHANNEL will offset losses from the drop in CLEAR CHANNEL's long position.| Sabra Health vs. Welltower | Sabra Health vs. Superior Plus Corp | Sabra Health vs. NMI Holdings | Sabra Health vs. SIVERS SEMICONDUCTORS AB |
| CLEAR CHANNEL vs. CarsalesCom | CLEAR CHANNEL vs. FEMALE HEALTH | CLEAR CHANNEL vs. SOLSTAD OFFSHORE NK | CLEAR CHANNEL vs. Sabra Health Care |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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