Correlation Between Sabra Health and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Sabra Health and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH, you can compare the effects of market volatilities on Sabra Health and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and FEMALE HEALTH.
Diversification Opportunities for Sabra Health and FEMALE HEALTH
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabra and FEMALE is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Sabra Health i.e., Sabra Health and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Sabra Health and FEMALE HEALTH
Assuming the 90 days horizon Sabra Health Care is expected to generate 0.37 times more return on investment than FEMALE HEALTH. However, Sabra Health Care is 2.74 times less risky than FEMALE HEALTH. It trades about 0.17 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.04 per unit of risk. If you would invest 1,288 in Sabra Health Care on August 31, 2024 and sell it today you would earn a total of 500.00 from holding Sabra Health Care or generate 38.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Sabra Health Care vs. FEMALE HEALTH
Performance |
| Timeline |
| Sabra Health Care |
| FEMALE HEALTH |
Sabra Health and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and FEMALE HEALTH
The main advantage of trading using opposite Sabra Health and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Sabra Health vs. Medical Properties Trust | Sabra Health vs. LTC Properties | Sabra Health vs. The GEO Group |
| FEMALE HEALTH vs. Nok Airlines PCL | FEMALE HEALTH vs. Seven West Media | FEMALE HEALTH vs. PARKEN Sport Entertainment | FEMALE HEALTH vs. SINGAPORE AIRLINES |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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