Correlation Between Sabre Corpo and Bill

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

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

Diversification Opportunities for Sabre Corpo and Bill

-0.32

Correlation Coefficient

Sabre Corpo  Bill

Very good diversification

The 3 months correlation between Sabre and Bill is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings and Sabre Corpo 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 Sabre Corpo are associated (or correlated) with Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of Sabre Corpo i.e., Sabre Corpo and Bill go up and down completely randomly.

Pair Corralation between Sabre Corpo and Bill

Given the investment horizon of 90 days Sabre Corpo is expected to generate 0.77 times more return on investment than Bill. However, Sabre Corpo is 1.29 times less risky than Bill. It trades about -0.02 of its potential returns per unit of risk. Bill Com Holdings is currently generating about -0.15 per unit of risk. If you would invest  367.00  in Sabre Corpo on December 27, 2024 and sell it today you would lose (35.00) from holding Sabre Corpo or give up 9.54% of portfolio value over 90 days.

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

Sabre Corpo  vs.  Bill Com Holdings

Sabre Corpo

Risk-Adjusted Performance

Very Weak

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

Bill Com Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bill Com Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Sabre Corpo and Bill

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

The idea behind Sabre Corpo and Bill Com Holdings 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.