Correlation Between Sabre Insurance and Albion Technology
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Albion Technology 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 Albion Technology 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 Albion Technology General, you can compare the effects of market volatilities on Sabre Insurance and Albion Technology 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 Albion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Albion Technology.
Diversification Opportunities for Sabre Insurance and Albion Technology
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabre and Albion is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Albion Technology General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albion Technology General 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 Albion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albion Technology General has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Albion Technology go up and down completely randomly.
Pair Corralation between Sabre Insurance and Albion Technology
Assuming the 90 days trading horizon Sabre Insurance Group is expected to under-perform the Albion Technology. In addition to that, Sabre Insurance is 1.52 times more volatile than Albion Technology General. It trades about -0.06 of its total potential returns per unit of risk. Albion Technology General is currently generating about 0.03 per unit of volatility. If you would invest 6,962 in Albion Technology General on August 25, 2024 and sell it today you would earn a total of 38.00 from holding Albion Technology General or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sabre Insurance Group vs. Albion Technology General
Performance |
| Timeline |
| Sabre Insurance Group |
| Albion Technology General |
Sabre Insurance and Albion Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Albion Technology
The main advantage of trading using opposite Sabre Insurance and Albion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Albion Technology 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 Albion Technology will offset losses from the drop in Albion Technology's long position.| Sabre Insurance vs. Sparebank 1 SR | Sabre Insurance vs. Zoom Video Communications | Sabre Insurance vs. Charter Communications Cl | Sabre Insurance vs. Verizon Communications |
| Albion Technology vs. Litigation Capital Management | Albion Technology vs. Associated British Foods | Albion Technology vs. Sabre Insurance Group | Albion Technology vs. Zurich Insurance Group |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |