Correlation Between Xiabuxiabu Catering and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Xiabuxiabu Catering 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 Xiabuxiabu Catering and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiabuxiabu Catering Management and Sabre Insurance Group, you can compare the effects of market volatilities on Xiabuxiabu Catering 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 Xiabuxiabu Catering with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiabuxiabu Catering and Sabre Insurance.
Diversification Opportunities for Xiabuxiabu Catering and Sabre Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xiabuxiabu and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xiabuxiabu Catering Management 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 Xiabuxiabu Catering 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 Xiabuxiabu Catering Management 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 Xiabuxiabu Catering i.e., Xiabuxiabu Catering and Sabre Insurance go up and down completely randomly.
Pair Corralation between Xiabuxiabu Catering and Sabre Insurance
Assuming the 90 days horizon Xiabuxiabu Catering Management is expected to under-perform the Sabre Insurance. In addition to that, Xiabuxiabu Catering is 23.12 times more volatile than Sabre Insurance Group. It trades about -0.08 of its total potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.07 per unit of volatility. If you would invest 476.00 in Sabre Insurance Group on September 12, 2024 and sell it today you would earn a total of 28.00 from holding Sabre Insurance Group or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Xiabuxiabu Catering Management vs. Sabre Insurance Group
Performance |
| Timeline |
| Xiabuxiabu Catering |
| Sabre Insurance Group |
Xiabuxiabu Catering and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiabuxiabu Catering and Sabre Insurance
The main advantage of trading using opposite Xiabuxiabu Catering and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiabuxiabu Catering 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.| Xiabuxiabu Catering vs. Jollibee Foods Corp | Xiabuxiabu Catering vs. Nathans Famous | Xiabuxiabu Catering vs. Good Times Restaurants | Xiabuxiabu Catering vs. Compass Group PLC |
| Sabre Insurance vs. Xiabuxiabu Catering Management | Sabre Insurance vs. CapitaLand Investment Limited | Sabre Insurance vs. Waste Management | Sabre Insurance vs. Guangdong Investment Limited |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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