Correlation Between Sabre Insurance and OFX Group
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and OFX Group 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 OFX Group 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 OFX Group Ltd, you can compare the effects of market volatilities on Sabre Insurance and OFX Group 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 OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and OFX Group.
Diversification Opportunities for Sabre Insurance and OFX Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and OFX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group 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 OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and OFX Group go up and down completely randomly.
Pair Corralation between Sabre Insurance and OFX Group
Assuming the 90 days horizon Sabre Insurance Group is expected to under-perform the OFX Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sabre Insurance Group is 1.53 times less risky than OFX Group. The pink sheet trades about -0.04 of its potential returns per unit of risk. The OFX Group Ltd is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 726.00 in OFX Group Ltd on December 11, 2024 and sell it today you would lose (291.00) from holding OFX Group Ltd or give up 40.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. OFX Group Ltd
Performance |
| Timeline |
| Sabre Insurance Group |
| OFX Group |
Sabre Insurance and OFX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and OFX Group
The main advantage of trading using opposite Sabre Insurance and OFX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, OFX Group 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 OFX Group will offset losses from the drop in OFX Group's long position.| Sabre Insurance vs. AG Mortgage Investment | Sabre Insurance vs. Apartment Investment and | Sabre Insurance vs. Fluent Inc | Sabre Insurance vs. Broadstone Net Lease |
| OFX Group vs. Boyd Gaming | OFX Group vs. Starbucks | OFX Group vs. Portillos | OFX Group vs. CF Industries Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |