Correlation Between Coor Service and Sabien Technology

Can any of the company-specific risk be diversified away by investing in both Coor Service and Sabien Technology 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 Coor Service and Sabien Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coor Service Management and Sabien Technology Group, you can compare the effects of market volatilities on Coor Service and Sabien Technology 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 Coor Service with a short position of Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Sabien Technology.

Diversification Opportunities for Coor Service and Sabien Technology

0.19

Correlation Coefficient

Coor Service  Sabien Technology

Average diversification

The 3 months correlation between Coor and Sabien is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology and Coor Service 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 Coor Service Management are associated (or correlated) with Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of Coor Service i.e., Coor Service and Sabien Technology go up and down completely randomly.

Pair Corralation between Coor Service and Sabien Technology

Assuming the 90 days trading horizon Coor Service Management is expected to generate 1.3 times more return on investment than Sabien Technology. However, Coor Service is 1.3 times more volatile than Sabien Technology Group. It trades about 0.0 of its potential returns per unit of risk. Sabien Technology Group is currently generating about -0.38 per unit of risk. If you would invest  3,372  in Coor Service Management on December 22, 2024 and sell it today you would lose (58.00) from holding Coor Service Management or give up 1.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Coor Service Management  vs.  Sabien Technology Group

Coor Service Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Coor Service Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Coor Service is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Sabien Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sabien Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Coor Service and Sabien Technology

The main advantage of trading using opposite Coor Service and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology's long position.

The idea behind Coor Service Management and Sabien Technology Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.