Correlation Between Talanx AG and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Talanx AG and Sabre Insurance 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 Talanx AG and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and Sabre Insurance Group, you can compare the effects of market volatilities on Talanx AG and Sabre Insurance 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 Talanx AG with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and Sabre Insurance.
Diversification Opportunities for Talanx AG and Sabre Insurance
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Talanx and Sabre is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and Sabre Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Insurance Group and Talanx AG 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 Talanx AG are associated (or correlated) with Sabre Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Insurance Group has no effect on the direction of Talanx AG i.e., Talanx AG and Sabre Insurance go up and down completely randomly.
Pair Corralation between Talanx AG and Sabre Insurance
Assuming the 90 days horizon Talanx AG is expected to under-perform the Sabre Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Talanx AG is 1.85 times less risky than Sabre Insurance. The stock trades about -0.08 of its potential returns per unit of risk. The Sabre Insurance Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 169.00 in Sabre Insurance Group on October 11, 2024 and sell it today you would lose (1.00) from holding Sabre Insurance Group or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talanx AG vs. Sabre Insurance Group
Performance |
| Timeline |
| Talanx AG |
| Sabre Insurance Group |
Talanx AG and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and Sabre Insurance
The main advantage of trading using opposite Talanx AG and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG position performs unexpectedly, Sabre Insurance 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 Sabre Insurance will offset losses from the drop in Sabre Insurance's long position.| Talanx AG vs. Shenandoah Telecommunications | Talanx AG vs. International Game Technology | Talanx AG vs. GMO Internet | Talanx AG vs. BRAGG GAMING GRP |
| Sabre Insurance vs. International Game Technology | Sabre Insurance vs. PENN NATL GAMING | Sabre Insurance vs. JD SPORTS FASH | Sabre Insurance vs. GAMING FAC SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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