Correlation Between Sabre Insurance and Mechel OAO
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Mechel OAO 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 Sabre Insurance and Mechel OAO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Insurance Group and Mechel OAO, you can compare the effects of market volatilities on Sabre Insurance and Mechel OAO 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 Sabre Insurance with a short position of Mechel OAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Mechel OAO.
Diversification Opportunities for Sabre Insurance and Mechel OAO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and Mechel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Mechel OAO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mechel OAO and Sabre Insurance 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 Sabre Insurance Group are associated (or correlated) with Mechel OAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mechel OAO has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Mechel OAO go up and down completely randomly.
Pair Corralation between Sabre Insurance and Mechel OAO
If you would invest 476.00 in Sabre Insurance Group on September 14, 2024 and sell it today you would earn a total of 28.00 from holding Sabre Insurance Group or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Mechel OAO
Performance |
| Timeline |
| Sabre Insurance Group |
| Mechel OAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sabre Insurance and Mechel OAO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Mechel OAO
The main advantage of trading using opposite Sabre Insurance and Mechel OAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Mechel OAO 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 Mechel OAO will offset losses from the drop in Mechel OAO's long position.| Sabre Insurance vs. AppTech Payments Corp | Sabre Insurance vs. Arbe Robotics Ltd | Sabre Insurance vs. Arax Holdings Corp | Sabre Insurance vs. HUMANA INC |
| Mechel OAO vs. RadNet Inc | Mechel OAO vs. Lipocine | Mechel OAO vs. Pinterest | Mechel OAO vs. Sphere Entertainment Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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