Correlation Between Fast Retailing and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Fast Retailing 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 Fast Retailing and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Retailing Co and Sabre Insurance Group, you can compare the effects of market volatilities on Fast Retailing 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 Fast Retailing with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and Sabre Insurance.
Diversification Opportunities for Fast Retailing and Sabre Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fast and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co 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 Fast Retailing 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 Fast Retailing Co 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 Fast Retailing i.e., Fast Retailing and Sabre Insurance go up and down completely randomly.
Pair Corralation between Fast Retailing and Sabre Insurance
If you would invest 504.00 in Sabre Insurance Group on December 27, 2024 and sell it today you would earn a total of 0.00 from holding Sabre Insurance Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
Fast Retailing Co vs. Sabre Insurance Group
Performance |
Timeline |
Fast Retailing |
Sabre Insurance Group |
Fast Retailing and Sabre Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fast Retailing and Sabre Insurance
The main advantage of trading using opposite Fast Retailing and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing 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.Fast Retailing vs. Industria de Diseno | Fast Retailing vs. Aritzia | Fast Retailing vs. Shoe Carnival | Fast Retailing vs. Genesco |
Sabre Insurance vs. Lincoln Electric Holdings | Sabre Insurance vs. World Houseware Limited | Sabre Insurance vs. Finnair Oyj | Sabre Insurance vs. EvoAir Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |