Correlation Between Sabre Corpo and Forrester Research

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

By analyzing existing cross correlation between Sabre Corpo and Forrester Research, you can compare the effects of market volatilities on Sabre Corpo and Forrester Research 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 Forrester Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Forrester Research.

Diversification Opportunities for Sabre Corpo and Forrester Research

-0.22

Correlation Coefficient

Sabre Corpo  Forrester Research

Very good diversification

The 3 months correlation between Sabre and Forrester is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and Forrester Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forrester Research 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 Forrester Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forrester Research has no effect on the direction of Sabre Corpo i.e., Sabre Corpo and Forrester Research go up and down completely randomly.

Pair Corralation between Sabre Corpo and Forrester Research

Given the investment horizon of 90 days Sabre Corpo is expected to generate 1.86 times more return on investment than Forrester Research. However, Sabre Corpo is 1.86 times more volatile than Forrester Research. It trades about 0.02 of its potential returns per unit of risk. Forrester Research is currently generating about -0.08 per unit of risk. If you would invest  420.00  in Sabre Corpo on December 2, 2024 and sell it today you would lose (7.00) from holding Sabre Corpo or give up 1.67% 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.  Forrester Research

Sabre Corpo

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sabre Corpo are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, Sabre Corpo may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Forrester Research

Risk-Adjusted Performance

Very Weak

Over the last 90 days Forrester Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating 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 Sabre Corpo and Forrester Research

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

The idea behind Sabre Corpo and Forrester Research 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.