Correlation Between Sabre Insurance and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Catalyst Media 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 Catalyst Media 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 Catalyst Media Group, you can compare the effects of market volatilities on Sabre Insurance and Catalyst Media 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 Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Catalyst Media.
Diversification Opportunities for Sabre Insurance and Catalyst Media
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and Catalyst is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group 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 Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Catalyst Media go up and down completely randomly.
Pair Corralation between Sabre Insurance and Catalyst Media
Assuming the 90 days trading horizon Sabre Insurance Group is expected to generate 1.02 times more return on investment than Catalyst Media. However, Sabre Insurance is 1.02 times more volatile than Catalyst Media Group. It trades about 0.04 of its potential returns per unit of risk. Catalyst Media Group is currently generating about 0.0 per unit of risk. If you would invest 9,533 in Sabre Insurance Group on August 30, 2024 and sell it today you would earn a total of 3,507 from holding Sabre Insurance Group or generate 36.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sabre Insurance Group vs. Catalyst Media Group
Performance |
| Timeline |
| Sabre Insurance Group |
| Catalyst Media Group |
Sabre Insurance and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Catalyst Media
The main advantage of trading using opposite Sabre Insurance and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Catalyst Media 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| Sabre Insurance vs. Samsung Electronics Co | Sabre Insurance vs. Samsung Electronics Co | Sabre Insurance vs. Toyota Motor Corp | Sabre Insurance vs. Reliance Industries Ltd |
| Catalyst Media vs. Hyundai Motor | Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. SoftBank Group Corp | Catalyst Media vs. Halyk Bank of |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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