Correlation Between Sabre Insurance and Argen X
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Argen X 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 Argen X 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 Argen X, you can compare the effects of market volatilities on Sabre Insurance and Argen X 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 Argen X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Argen X.
Diversification Opportunities for Sabre Insurance and Argen X
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sabre and Argen is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X 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 Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Argen X go up and down completely randomly.
Pair Corralation between Sabre Insurance and Argen X
Assuming the 90 days trading horizon Sabre Insurance Group is expected to generate 0.56 times more return on investment than Argen X. However, Sabre Insurance Group is 1.79 times less risky than Argen X. It trades about -0.23 of its potential returns per unit of risk. Argen X is currently generating about -0.37 per unit of risk. If you would invest 13,200 in Sabre Insurance Group on December 13, 2024 and sell it today you would lose (700.00) from holding Sabre Insurance Group or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Argen X
Performance |
| Timeline |
| Sabre Insurance Group |
| Argen X |
Sabre Insurance and Argen X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Argen X
The main advantage of trading using opposite Sabre Insurance and Argen X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Argen X 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 Argen X will offset losses from the drop in Argen X's long position.| Sabre Insurance vs. Finnair Oyj | Sabre Insurance vs. DFS Furniture PLC | Sabre Insurance vs. Elmos Semiconductor SE | Sabre Insurance vs. Cairn Homes PLC |
| Argen X vs. Wheaton Precious Metals | Argen X vs. Intuitive Investments Group | Argen X vs. Kinnevik Investment AB | Argen X vs. Beeks Trading |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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