Correlation Between Sabre Insurance and Take Two
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Take Two 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 Take Two 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 Take Two Interactive Software, you can compare the effects of market volatilities on Sabre Insurance and Take Two 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 Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Take Two.
Diversification Opportunities for Sabre Insurance and Take Two
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sabre and Take is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive 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 Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Take Two go up and down completely randomly.
Pair Corralation between Sabre Insurance and Take Two
Assuming the 90 days trading horizon Sabre Insurance Group is expected to under-perform the Take Two. In addition to that, Sabre Insurance is 1.06 times more volatile than Take Two Interactive Software. It trades about -0.08 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.08 per unit of volatility. If you would invest 15,659 in Take Two Interactive Software on October 25, 2024 and sell it today you would earn a total of 2,997 from holding Take Two Interactive Software or generate 19.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.82% |
| Values | Daily Returns |
Sabre Insurance Group vs. Take Two Interactive Software
Performance |
| Timeline |
| Sabre Insurance Group |
| Take Two Interactive |
Sabre Insurance and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Take Two
The main advantage of trading using opposite Sabre Insurance and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| Sabre Insurance vs. Games Workshop Group | Sabre Insurance vs. Auto Trader Group | Sabre Insurance vs. Coor Service Management | Sabre Insurance vs. iShares Dow Jones |
| Take Two vs. UNIQA Insurance Group | Take Two vs. Silver Bullet Data | Take Two vs. Berner Kantonalbank AG | Take Two vs. Bankers Investment Trust |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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