Correlation Between Sabre Insurance and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Siriuspoint 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 Siriuspoint 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 Siriuspoint, you can compare the effects of market volatilities on Sabre Insurance and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Siriuspoint.
Diversification Opportunities for Sabre Insurance and Siriuspoint
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and Siriuspoint is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Siriuspoint go up and down completely randomly.
Pair Corralation between Sabre Insurance and Siriuspoint
Assuming the 90 days horizon Sabre Insurance Group is expected to under-perform the Siriuspoint. In addition to that, Sabre Insurance is 1.34 times more volatile than Siriuspoint. It trades about -0.03 of its total potential returns per unit of risk. Siriuspoint is currently generating about 0.11 per unit of volatility. If you would invest 625.00 in Siriuspoint on September 13, 2024 and sell it today you would earn a total of 951.00 from holding Siriuspoint or generate 152.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Siriuspoint
Performance |
| Timeline |
| Sabre Insurance Group |
| Siriuspoint |
Sabre Insurance and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Siriuspoint
The main advantage of trading using opposite Sabre Insurance and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint'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 |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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