Correlation Between Sabio Holdings and Comscore

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

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

Diversification Opportunities for Sabio Holdings and Comscore

-0.24

Correlation Coefficient

Sabio Holdings  Comscore

Very good diversification

The 3 months correlation between Sabio and Comscore is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sabio Holdings and Comscore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comscore and Sabio Holdings 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 Sabio Holdings are associated (or correlated) with Comscore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comscore has no effect on the direction of Sabio Holdings i.e., Sabio Holdings and Comscore go up and down completely randomly.

Pair Corralation between Sabio Holdings and Comscore

Assuming the 90 days horizon Sabio Holdings is expected to generate 1.32 times more return on investment than Comscore. However, Sabio Holdings is 1.32 times more volatile than Comscore. It trades about 0.4 of its potential returns per unit of risk. Comscore is currently generating about -0.26 per unit of risk. If you would invest  33.00  in Sabio Holdings on December 4, 2024 and sell it today you would earn a total of  15.00  from holding Sabio Holdings or generate 45.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Sabio Holdings  vs.  Comscore

Sabio Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sabio Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sabio Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Comscore

Risk-Adjusted Performance

Very Weak

Over the last 90 days Comscore has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Sabio Holdings and Comscore

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

The idea behind Sabio Holdings and Comscore 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.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.