Correlation Between Sabra Health and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Sabra Health and GALENA MINING 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 GALENA MINING 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 GALENA MINING LTD, you can compare the effects of market volatilities on Sabra Health and GALENA MINING 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 GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and GALENA MINING.
Diversification Opportunities for Sabra Health and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabra and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and GALENA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALENA MINING LTD 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 GALENA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALENA MINING LTD has no effect on the direction of Sabra Health i.e., Sabra Health and GALENA MINING go up and down completely randomly.
Pair Corralation between Sabra Health and GALENA MINING
If you would invest 1,502 in Sabra Health Care on September 3, 2024 and sell it today you would earn a total of 279.00 from holding Sabra Health Care or generate 18.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Sabra Health Care vs. GALENA MINING LTD
Performance |
| Timeline |
| Sabra Health Care |
| GALENA MINING LTD |
Sabra Health and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and GALENA MINING
The main advantage of trading using opposite Sabra Health and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, GALENA MINING 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 GALENA MINING will offset losses from the drop in GALENA MINING's long position.| Sabra Health vs. THAI BEVERAGE | Sabra Health vs. Lifeway Foods | Sabra Health vs. Cal Maine Foods | Sabra Health vs. SENECA FOODS A |
| GALENA MINING vs. Sekisui Chemical Co | GALENA MINING vs. CHEMICAL INDUSTRIES | GALENA MINING vs. Quaker Chemical | GALENA MINING vs. Citic Telecom International |
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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