Correlation Between Vodafone Group and Sabre Gold
Can any of the company-specific risk be diversified away by investing in both Vodafone Group and Sabre Gold 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 Vodafone Group and Sabre Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vodafone Group PLC and Sabre Gold Mines, you can compare the effects of market volatilities on Vodafone Group and Sabre Gold 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 Vodafone Group with a short position of Sabre Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vodafone Group and Sabre Gold.
Diversification Opportunities for Vodafone Group and Sabre Gold
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vodafone and Sabre is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Vodafone Group PLC and Sabre Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Gold Mines and Vodafone Group 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 Vodafone Group PLC are associated (or correlated) with Sabre Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Gold Mines has no effect on the direction of Vodafone Group i.e., Vodafone Group and Sabre Gold go up and down completely randomly.
Pair Corralation between Vodafone Group and Sabre Gold
Considering the 90-day investment horizon Vodafone Group PLC is expected to under-perform the Sabre Gold. But the stock apears to be less risky and, when comparing its historical volatility, Vodafone Group PLC is 2.67 times less risky than Sabre Gold. The stock trades about -0.03 of its potential returns per unit of risk. The Sabre Gold Mines is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Sabre Gold Mines on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Sabre Gold Mines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Vodafone Group PLC vs. Sabre Gold Mines
Performance |
| Timeline |
| Vodafone Group PLC |
| Sabre Gold Mines |
Vodafone Group and Sabre Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vodafone Group and Sabre Gold
The main advantage of trading using opposite Vodafone Group and Sabre Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vodafone Group position performs unexpectedly, Sabre Gold 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 Gold will offset losses from the drop in Sabre Gold's long position.| Vodafone Group vs. Liberty Broadband Srs | Vodafone Group vs. Liberty Broadband Srs | Vodafone Group vs. KT Corporation | Vodafone Group vs. Telkom Indonesia Tbk |
| Sabre Gold vs. Telefonica Brasil SA | Sabre Gold vs. Vodafone Group PLC | Sabre Gold vs. Grupo Televisa SAB | Sabre Gold 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |