Correlation Between Sabre Insurance and Greenroc Mining
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Greenroc Mining 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 Greenroc Mining 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 Greenroc Mining PLC, you can compare the effects of market volatilities on Sabre Insurance and Greenroc Mining 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 Greenroc Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Greenroc Mining.
Diversification Opportunities for Sabre Insurance and Greenroc Mining
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabre and Greenroc is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Greenroc Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenroc Mining 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 Greenroc Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenroc Mining PLC has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Greenroc Mining go up and down completely randomly.
Pair Corralation between Sabre Insurance and Greenroc Mining
Assuming the 90 days trading horizon Sabre Insurance Group is expected to generate 0.37 times more return on investment than Greenroc Mining. However, Sabre Insurance Group is 2.74 times less risky than Greenroc Mining. It trades about 0.01 of its potential returns per unit of risk. Greenroc Mining PLC is currently generating about -0.05 per unit of risk. If you would invest 13,113 in Sabre Insurance Group on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Sabre Insurance Group or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Greenroc Mining PLC
Performance |
| Timeline |
| Sabre Insurance Group |
| Greenroc Mining PLC |
Sabre Insurance and Greenroc Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Greenroc Mining
The main advantage of trading using opposite Sabre Insurance and Greenroc Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Greenroc Mining 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 Greenroc Mining will offset losses from the drop in Greenroc Mining's long position.| Sabre Insurance vs. Berkshire Hathaway | Sabre Insurance vs. Hyundai Motor | Sabre Insurance vs. Samsung Electronics Co | Sabre Insurance vs. Samsung Electronics Co |
| Greenroc Mining vs. Associated British Foods | Greenroc Mining vs. Monster Beverage Corp | Greenroc Mining vs. Premier Foods PLC | Greenroc Mining vs. X FAB Silicon Foundries |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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