Correlation Between Panther Metals and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Panther Metals 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 Panther Metals and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Sabre Insurance Group, you can compare the effects of market volatilities on Panther Metals 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 Panther Metals with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Sabre Insurance.
Diversification Opportunities for Panther Metals and Sabre Insurance
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panther and Sabre is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC 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 Panther Metals 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 Panther Metals PLC 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 Panther Metals i.e., Panther Metals and Sabre Insurance go up and down completely randomly.
Pair Corralation between Panther Metals and Sabre Insurance
Assuming the 90 days trading horizon Panther Metals PLC is expected to under-perform the Sabre Insurance. In addition to that, Panther Metals is 2.11 times more volatile than Sabre Insurance Group. It trades about -0.53 of its total potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.13 per unit of volatility. If you would invest 13,180 in Sabre Insurance Group on September 24, 2024 and sell it today you would earn a total of 600.00 from holding Sabre Insurance Group or generate 4.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Panther Metals PLC vs. Sabre Insurance Group
Performance |
Timeline |
Panther Metals PLC |
Sabre Insurance Group |
Panther Metals and Sabre Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Panther Metals and Sabre Insurance
The main advantage of trading using opposite Panther Metals and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals 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.Panther Metals vs. AIM ImmunoTech | Panther Metals vs. Aeorema Communications Plc | Panther Metals vs. Spirent Communications plc | Panther Metals vs. mobilezone holding AG |
Sabre Insurance vs. Griffin Mining | Sabre Insurance vs. Anglesey Mining | Sabre Insurance vs. Blackrock World Mining | Sabre Insurance vs. Caledonia Mining |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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