Correlation Between Sabien Technology and Guaranty Trust
Can any of the company-specific risk be diversified away by investing in both Sabien Technology and Guaranty Trust 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 Sabien Technology and Guaranty Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabien Technology Group and Guaranty Trust Holding, you can compare the effects of market volatilities on Sabien Technology and Guaranty Trust 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 Sabien Technology with a short position of Guaranty Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabien Technology and Guaranty Trust.
Diversification Opportunities for Sabien Technology and Guaranty Trust
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabien and Guaranty is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group and Guaranty Trust Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guaranty Trust Holding and Sabien Technology 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 Sabien Technology Group are associated (or correlated) with Guaranty Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guaranty Trust Holding has no effect on the direction of Sabien Technology i.e., Sabien Technology and Guaranty Trust go up and down completely randomly.
Pair Corralation between Sabien Technology and Guaranty Trust
Assuming the 90 days trading horizon Sabien Technology Group is expected to generate 2.43 times more return on investment than Guaranty Trust. However, Sabien Technology is 2.43 times more volatile than Guaranty Trust Holding. It trades about 0.17 of its potential returns per unit of risk. Guaranty Trust Holding is currently generating about 0.06 per unit of risk. If you would invest 975.00 in Sabien Technology Group on September 12, 2024 and sell it today you would earn a total of 125.00 from holding Sabien Technology Group or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabien Technology Group vs. Guaranty Trust Holding
Performance |
| Timeline |
| Sabien Technology |
| Guaranty Trust Holding |
Sabien Technology and Guaranty Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabien Technology and Guaranty Trust
The main advantage of trading using opposite Sabien Technology and Guaranty Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabien Technology position performs unexpectedly, Guaranty Trust 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 Guaranty Trust will offset losses from the drop in Guaranty Trust's long position.| Sabien Technology vs. Home Depot | Sabien Technology vs. Chrysalis Investments | Sabien Technology vs. Neometals | Sabien Technology vs. Coor Service Management |
| Guaranty Trust vs. Deltex Medical Group | Guaranty Trust vs. United Utilities Group | Guaranty Trust vs. Sabien Technology Group | Guaranty Trust vs. Ashtead Technology Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |