Correlation Between Sabre Corpo and FREEPORT

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

By analyzing existing cross correlation between Sabre Corpo and FREEPORT MCMORAN INC 4625, you can compare the effects of market volatilities on Sabre Corpo and FREEPORT 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 FREEPORT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and FREEPORT.

Diversification Opportunities for Sabre Corpo and FREEPORT

-0.29

Correlation Coefficient

Sabre Corpo  FREEPORT

Very good diversification

The 3 months correlation between Sabre and FREEPORT is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and FREEPORT MCMORAN INC 4625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FREEPORT MCMORAN INC 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 FREEPORT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FREEPORT MCMORAN INC has no effect on the direction of Sabre Corpo i.e., Sabre Corpo and FREEPORT go up and down completely randomly.

Pair Corralation between Sabre Corpo and FREEPORT

Given the investment horizon of 90 days Sabre Corpo is expected to generate 2.57 times more return on investment than FREEPORT. However, Sabre Corpo is 2.57 times more volatile than FREEPORT MCMORAN INC 4625. It trades about 0.01 of its potential returns per unit of risk. FREEPORT MCMORAN INC 4625 is currently generating about -0.2 per unit of risk. If you would invest  376.00  in Sabre Corpo on September 25, 2024 and sell it today you would lose (2.00) from holding Sabre Corpo or give up 0.53% 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.  FREEPORT MCMORAN INC 4625

Sabre Corpo

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sabre Corpo are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, Sabre Corpo reported solid returns over the last few months and may actually be approaching a breakup point.

FREEPORT MCMORAN INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FREEPORT MCMORAN INC 4625 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for FREEPORT MCMORAN INC 4625 investors.

Pair Trading with Sabre Corpo and FREEPORT

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

The idea behind Sabre Corpo and FREEPORT MCMORAN INC 4625 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.