Correlation Between Sabre Insurance and Whitbread PLC
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Whitbread PLC 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 Whitbread PLC 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 Whitbread PLC, you can compare the effects of market volatilities on Sabre Insurance and Whitbread PLC 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 Whitbread PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Whitbread PLC.
Diversification Opportunities for Sabre Insurance and Whitbread PLC
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sabre and Whitbread is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Whitbread PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitbread 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 Whitbread PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitbread PLC has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Whitbread PLC go up and down completely randomly.
Pair Corralation between Sabre Insurance and Whitbread PLC
Assuming the 90 days trading horizon Sabre Insurance Group is expected to generate 1.3 times more return on investment than Whitbread PLC. However, Sabre Insurance is 1.3 times more volatile than Whitbread PLC. It trades about -0.01 of its potential returns per unit of risk. Whitbread PLC is currently generating about -0.02 per unit of risk. If you would invest 15,373 in Sabre Insurance Group on September 12, 2024 and sell it today you would lose (1,313) from holding Sabre Insurance Group or give up 8.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Whitbread PLC
Performance |
| Timeline |
| Sabre Insurance Group |
| Whitbread PLC |
Sabre Insurance and Whitbread PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Whitbread PLC
The main advantage of trading using opposite Sabre Insurance and Whitbread PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Whitbread PLC 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 Whitbread PLC will offset losses from the drop in Whitbread PLC's long position.| Sabre Insurance vs. Bloomsbury Publishing Plc | Sabre Insurance vs. Molson Coors Beverage | Sabre Insurance vs. METALL ZUG AG | Sabre Insurance vs. Associated British Foods |
| Whitbread PLC vs. Deltex Medical Group | Whitbread PLC vs. Sabre Insurance Group | Whitbread PLC vs. bet at home AG | Whitbread PLC vs. Vienna Insurance Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |