Correlation Between Sabre Insurance and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Cembra Money 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 Cembra Money 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 Cembra Money Bank, you can compare the effects of market volatilities on Sabre Insurance and Cembra Money 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 Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Cembra Money.
Diversification Opportunities for Sabre Insurance and Cembra Money
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and Cembra is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank 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 Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Cembra Money go up and down completely randomly.
Pair Corralation between Sabre Insurance and Cembra Money
Assuming the 90 days trading horizon Sabre Insurance Group is expected to under-perform the Cembra Money. But the stock apears to be less risky and, when comparing its historical volatility, Sabre Insurance Group is 1.95 times less risky than Cembra Money. The stock trades about -0.06 of its potential returns per unit of risk. The Cembra Money Bank is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 8,920 in Cembra Money Bank on December 4, 2024 and sell it today you would earn a total of 823.00 from holding Cembra Money Bank or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Cembra Money Bank
Performance |
| Timeline |
| Sabre Insurance Group |
| Cembra Money Bank |
Sabre Insurance and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Cembra Money
The main advantage of trading using opposite Sabre Insurance and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| Sabre Insurance vs. JD Sports Fashion | Sabre Insurance vs. Intermediate Capital Group | Sabre Insurance vs. Zinc Media Group | Sabre Insurance vs. AcadeMedia AB |
| Cembra Money vs. BW Offshore | Cembra Money vs. Broadridge Financial Solutions | Cembra Money vs. iShares Physical Silver | Cembra Money vs. Jade Road Investments |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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