Correlation Between Sabre Insurance and Electronic Arts
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Electronic Arts 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 Electronic Arts 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 Electronic Arts, you can compare the effects of market volatilities on Sabre Insurance and Electronic Arts 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 Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Electronic Arts.
Diversification Opportunities for Sabre Insurance and Electronic Arts
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sabre and Electronic is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts 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 Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Electronic Arts go up and down completely randomly.
Pair Corralation between Sabre Insurance and Electronic Arts
Assuming the 90 days trading horizon Sabre Insurance Group is expected to generate 1.36 times more return on investment than Electronic Arts. However, Sabre Insurance is 1.36 times more volatile than Electronic Arts. It trades about 0.16 of its potential returns per unit of risk. Electronic Arts is currently generating about -0.39 per unit of risk. If you would invest 13,140 in Sabre Insurance Group on September 27, 2024 and sell it today you would earn a total of 740.00 from holding Sabre Insurance Group or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sabre Insurance Group vs. Electronic Arts
Performance |
| Timeline |
| Sabre Insurance Group |
| Electronic Arts |
Sabre Insurance and Electronic Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Electronic Arts
The main advantage of trading using opposite Sabre Insurance and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.| Sabre Insurance vs. Planet Fitness Cl | Sabre Insurance vs. Inspiration Healthcare Group | Sabre Insurance vs. Cardinal Health | Sabre Insurance vs. Worldwide Healthcare Trust |
| Electronic Arts vs. JB Hunt Transport | Electronic Arts vs. Caledonia Mining | Electronic Arts vs. Invesco Physical Silver | Electronic Arts vs. Gaztransport et Technigaz |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |