Correlation Between Sabre Insurance and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Evolution Gaming 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 Evolution Gaming 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 Evolution Gaming Group, you can compare the effects of market volatilities on Sabre Insurance and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Evolution Gaming.
Diversification Opportunities for Sabre Insurance and Evolution Gaming
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabre and Evolution is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Evolution Gaming go up and down completely randomly.
Pair Corralation between Sabre Insurance and Evolution Gaming
Assuming the 90 days trading horizon Sabre Insurance Group is expected to generate 0.4 times more return on investment than Evolution Gaming. However, Sabre Insurance Group is 2.5 times less risky than Evolution Gaming. It trades about -0.19 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.12 per unit of risk. If you would invest 13,680 in Sabre Insurance Group on October 16, 2024 and sell it today you would lose (540.00) from holding Sabre Insurance Group or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Evolution Gaming Group
Performance |
| Timeline |
| Sabre Insurance Group |
| Evolution Gaming |
Sabre Insurance and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Evolution Gaming
The main advantage of trading using opposite Sabre Insurance and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Sabre Insurance vs. URU Metals | Sabre Insurance vs. Playtech Plc | Sabre Insurance vs. Cornish Metals | Sabre Insurance vs. Universal Music Group |
| Evolution Gaming vs. Sabre Insurance Group | Evolution Gaming vs. Norwegian Air Shuttle | Evolution Gaming vs. Sealed Air Corp | Evolution Gaming vs. Lundin Mining Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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