Correlation Between Sabre Insurance and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Surgical Science 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 Surgical Science 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 Surgical Science Sweden, you can compare the effects of market volatilities on Sabre Insurance and Surgical Science 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 Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Surgical Science.
Diversification Opportunities for Sabre Insurance and Surgical Science
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sabre and Surgical is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden 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 Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Surgical Science go up and down completely randomly.
Pair Corralation between Sabre Insurance and Surgical Science
Assuming the 90 days trading horizon Sabre Insurance is expected to generate 1.92 times less return on investment than Surgical Science. But when comparing it to its historical volatility, Sabre Insurance Group is 1.7 times less risky than Surgical Science. It trades about 0.01 of its potential returns per unit of risk. Surgical Science Sweden is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 15,438 in Surgical Science Sweden on September 14, 2024 and sell it today you would lose (398.00) from holding Surgical Science Sweden or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.91% |
| Values | Daily Returns |
Sabre Insurance Group vs. Surgical Science Sweden
Performance |
| Timeline |
| Sabre Insurance Group |
| Surgical Science Sweden |
Sabre Insurance and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Surgical Science
The main advantage of trading using opposite Sabre Insurance and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Surgical Science 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 Surgical Science will offset losses from the drop in Surgical Science's long position.| Sabre Insurance vs. SupplyMe Capital PLC | Sabre Insurance vs. Lloyds Banking Group | Sabre Insurance vs. Premier African Minerals | Sabre Insurance vs. SANTANDER UK 8 |
| Surgical Science vs. Verizon Communications | Surgical Science vs. The Mercantile Investment | Surgical Science vs. Sabre Insurance Group | Surgical Science vs. Charter Communications Cl |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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