Correlation Between Sabre Insurance and Public Storage
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Public Storage 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 Public Storage 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 Public Storage, you can compare the effects of market volatilities on Sabre Insurance and Public Storage 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 Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Public Storage.
Diversification Opportunities for Sabre Insurance and Public Storage
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabre and Public is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Public Storage go up and down completely randomly.
Pair Corralation between Sabre Insurance and Public Storage
Assuming the 90 days trading horizon Sabre Insurance Group is expected to under-perform the Public Storage. In addition to that, Sabre Insurance is 1.08 times more volatile than Public Storage. It trades about -0.2 of its total potential returns per unit of risk. Public Storage is currently generating about 0.06 per unit of volatility. If you would invest 29,472 in Public Storage on October 20, 2024 and sell it today you would earn a total of 368.00 from holding Public Storage or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sabre Insurance Group vs. Public Storage
Performance |
| Timeline |
| Sabre Insurance Group |
| Public Storage |
Sabre Insurance and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Public Storage
The main advantage of trading using opposite Sabre Insurance and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.| Sabre Insurance vs. Berkshire Hathaway | Sabre Insurance vs. Samsung Electronics Co | Sabre Insurance vs. Samsung Electronics Co | Sabre Insurance vs. Chocoladefabriken Lindt Spruengli |
| Public Storage vs. Aptitude Software Group | Public Storage vs. Hochschild Mining plc | Public Storage vs. Take Two Interactive Software | Public Storage vs. Eneraqua Technologies PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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