Correlation Between Sabre Gold and Telefonica Brasil
Can any of the company-specific risk be diversified away by investing in both Sabre Gold and Telefonica Brasil 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 Gold and Telefonica Brasil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Gold Mines and Telefonica Brasil SA, you can compare the effects of market volatilities on Sabre Gold and Telefonica Brasil 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 Gold with a short position of Telefonica Brasil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Gold and Telefonica Brasil.
Diversification Opportunities for Sabre Gold and Telefonica Brasil
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and Telefonica is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Gold Mines and Telefonica Brasil SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telefonica Brasil and Sabre Gold 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 Gold Mines are associated (or correlated) with Telefonica Brasil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telefonica Brasil has no effect on the direction of Sabre Gold i.e., Sabre Gold and Telefonica Brasil go up and down completely randomly.
Pair Corralation between Sabre Gold and Telefonica Brasil
Assuming the 90 days horizon Sabre Gold Mines is expected to generate 6.08 times more return on investment than Telefonica Brasil. However, Sabre Gold is 6.08 times more volatile than Telefonica Brasil SA. It trades about 0.18 of its potential returns per unit of risk. Telefonica Brasil SA is currently generating about -0.12 per unit of risk. If you would invest 5.60 in Sabre Gold Mines on September 12, 2024 and sell it today you would earn a total of 8.40 from holding Sabre Gold Mines or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Gold Mines vs. Telefonica Brasil SA
Performance |
| Timeline |
| Sabre Gold Mines |
| Telefonica Brasil |
Sabre Gold and Telefonica Brasil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Gold and Telefonica Brasil
The main advantage of trading using opposite Sabre Gold and Telefonica Brasil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Gold position performs unexpectedly, Telefonica Brasil 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 Telefonica Brasil will offset losses from the drop in Telefonica Brasil's long position.| Sabre Gold vs. Thunder Mountain Gold | Sabre Gold vs. Romios Gold Resources | Sabre Gold vs. Kootenay Silver | Sabre Gold vs. Grande Portage Resources |
| Telefonica Brasil vs. Orange SA ADR | Telefonica Brasil vs. Vodafone Group PLC | Telefonica Brasil vs. Grupo Televisa SAB | Telefonica Brasil vs. America Movil SAB |
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.
Other Complementary Tools
| 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 | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |