Correlation Between Sabre Insurance and Futura Medical
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Futura 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 Futura 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 Futura Medical, you can compare the effects of market volatilities on Sabre Insurance and Futura 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 Futura Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Futura Medical.
Diversification Opportunities for Sabre Insurance and Futura Medical
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sabre and Futura is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Futura Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futura Medical 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 Futura Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futura Medical has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Futura Medical go up and down completely randomly.
Pair Corralation between Sabre Insurance and Futura Medical
Assuming the 90 days trading horizon Sabre Insurance Group is expected to generate 0.46 times more return on investment than Futura Medical. However, Sabre Insurance Group is 2.19 times less risky than Futura Medical. It trades about 0.04 of its potential returns per unit of risk. Futura Medical is currently generating about 0.0 per unit of risk. If you would invest 9,699 in Sabre Insurance Group on September 3, 2024 and sell it today you would earn a total of 3,421 from holding Sabre Insurance Group or generate 35.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Futura Medical
Performance |
| Timeline |
| Sabre Insurance Group |
| Futura Medical |
Sabre Insurance and Futura Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Futura Medical
The main advantage of trading using opposite Sabre Insurance and Futura Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Futura 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 Futura Medical will offset losses from the drop in Futura Medical's long position.| Sabre Insurance vs. McEwen Mining | Sabre Insurance vs. United Internet AG | Sabre Insurance vs. Universal Display Corp | Sabre Insurance vs. GoldMining |
| Futura Medical vs. Lendinvest PLC | Futura Medical vs. Regions Financial Corp | Futura Medical vs. Dentsply Sirona | Futura Medical vs. Discover Financial Services |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |