Correlation Between Thayer Ventures and Sabre

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

By analyzing existing cross correlation between Thayer Ventures Acquisition and Sabre, you can compare the effects of market volatilities on Thayer Ventures and Sabre 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 Thayer Ventures with a short position of Sabre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thayer Ventures and Sabre.

Diversification Opportunities for Thayer Ventures and Sabre

0.0

Correlation Coefficient

Thayer Ventures  Sabre

Pay attention - limited upside

The 3 months correlation between Thayer and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition and Sabre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre and Thayer Ventures 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 Thayer Ventures Acquisition are associated (or correlated) with Sabre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre has no effect on the direction of Thayer Ventures i.e., Thayer Ventures and Sabre go up and down completely randomly.

Pair Corralation between Thayer Ventures and Sabre

If you would invest  1.30  in Thayer Ventures Acquisition on October 7, 2024 and sell it today you would earn a total of  0.10  from holding Thayer Ventures Acquisition or generate 7.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.79%
Values	Daily Returns

Thayer Ventures Acquisition  vs.  Sabre

Thayer Ventures Acqu

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thayer Ventures Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Thayer Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

Sabre

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sabre has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Sabre is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Thayer Ventures and Sabre

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

The idea behind Thayer Ventures Acquisition and Sabre 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..