Correlation Between Sabien Technology and Supermarket Income
Can any of the company-specific risk be diversified away by investing in both Sabien Technology and Supermarket Income 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 Supermarket Income 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 Supermarket Income REIT, you can compare the effects of market volatilities on Sabien Technology and Supermarket Income 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 Supermarket Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabien Technology and Supermarket Income.
Diversification Opportunities for Sabien Technology and Supermarket Income
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sabien and Supermarket is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group and Supermarket Income REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supermarket Income REIT 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 Supermarket Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supermarket Income REIT has no effect on the direction of Sabien Technology i.e., Sabien Technology and Supermarket Income go up and down completely randomly.
Pair Corralation between Sabien Technology and Supermarket Income
Assuming the 90 days trading horizon Sabien Technology Group is expected to generate 2.15 times more return on investment than Supermarket Income. However, Sabien Technology is 2.15 times more volatile than Supermarket Income REIT. It trades about 0.02 of its potential returns per unit of risk. Supermarket Income REIT is currently generating about -0.02 per unit of risk. If you would invest 1,075 in Sabien Technology Group on September 14, 2024 and sell it today you would earn a total of 25.00 from holding Sabien Technology Group or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabien Technology Group vs. Supermarket Income REIT
Performance |
| Timeline |
| Sabien Technology |
| Supermarket Income REIT |
Sabien Technology and Supermarket Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabien Technology and Supermarket Income
The main advantage of trading using opposite Sabien Technology and Supermarket Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabien Technology position performs unexpectedly, Supermarket Income 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 Supermarket Income will offset losses from the drop in Supermarket Income's long position.| Sabien Technology vs. GreenX Metals | Sabien Technology vs. Ocean Harvest Technology | Sabien Technology vs. Vitec Software Group | Sabien Technology vs. Wheaton Precious Metals |
| Supermarket Income vs. Microchip Technology | Supermarket Income vs. Take Two Interactive Software | Supermarket Income vs. Ashtead Technology Holdings | Supermarket Income vs. Sabien Technology 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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