Correlation Between Sabre Insurance and Guild Esports
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Guild Esports 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 Guild Esports 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 Guild Esports Plc, you can compare the effects of market volatilities on Sabre Insurance and Guild Esports 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 Guild Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Guild Esports.
Diversification Opportunities for Sabre Insurance and Guild Esports
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sabre and Guild is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Guild Esports Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Esports Plc 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 Guild Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Esports Plc has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Guild Esports go up and down completely randomly.
Pair Corralation between Sabre Insurance and Guild Esports
Assuming the 90 days trading horizon Sabre Insurance Group is expected to generate 0.17 times more return on investment than Guild Esports. However, Sabre Insurance Group is 6.06 times less risky than Guild Esports. It trades about -0.01 of its potential returns per unit of risk. Guild Esports Plc is currently generating about -0.05 per unit of risk. If you would invest 14,526 in Sabre Insurance Group on October 29, 2024 and sell it today you would lose (1,106) from holding Sabre Insurance Group or give up 7.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Guild Esports Plc
Performance |
| Timeline |
| Sabre Insurance Group |
| Guild Esports Plc |
Sabre Insurance and Guild Esports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Guild Esports
The main advantage of trading using opposite Sabre Insurance and Guild Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Guild Esports 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 Guild Esports will offset losses from the drop in Guild Esports' long position.| Sabre Insurance vs. Mineral Financial Investments | Sabre Insurance vs. Compagnie Plastic Omnium | Sabre Insurance vs. New Residential Investment | Sabre Insurance vs. Vienna Insurance Group |
| Guild Esports vs. Atalaya Mining | Guild Esports vs. Mobile Tornado Group | Guild Esports vs. European Metals Holdings | Guild Esports vs. Fulcrum Metals PLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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