Correlation Between Sabre Insurance and Deltex Medical
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Deltex Medical 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 Deltex Medical 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 Deltex Medical Group, you can compare the effects of market volatilities on Sabre Insurance and Deltex Medical 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 Deltex Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Deltex Medical.
Diversification Opportunities for Sabre Insurance and Deltex Medical
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sabre and Deltex is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Deltex Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deltex Medical 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 Deltex Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deltex Medical Group has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Deltex Medical go up and down completely randomly.
Pair Corralation between Sabre Insurance and Deltex Medical
Assuming the 90 days trading horizon Sabre Insurance Group is expected to under-perform the Deltex Medical. But the stock apears to be less risky and, when comparing its historical volatility, Sabre Insurance Group is 9.52 times less risky than Deltex Medical. The stock trades about -0.12 of its potential returns per unit of risk. The Deltex Medical Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Deltex Medical Group on November 18, 2024 and sell it today you would lose (0.25) from holding Deltex Medical Group or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Deltex Medical Group
Performance |
| Timeline |
| Sabre Insurance Group |
| Deltex Medical Group |
Sabre Insurance and Deltex Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Deltex Medical
The main advantage of trading using opposite Sabre Insurance and Deltex Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Deltex Medical 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 Deltex Medical will offset losses from the drop in Deltex Medical's long position.| Sabre Insurance vs. CleanTech Lithium plc | Sabre Insurance vs. Clean Power Hydrogen | Sabre Insurance vs. Verizon Communications | Sabre Insurance vs. Mobile Tornado Group |
| Deltex Medical vs. Fevertree Drinks Plc | Deltex Medical vs. National Beverage Corp | Deltex Medical vs. Capital Drilling | Deltex Medical vs. Batm Advanced Communications |
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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