Correlation Between Sabre Corpo and U1566PAD7

Can any of the company-specific risk be diversified away by investing in both Sabre Corpo and U1566PAD7 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 U1566PAD7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sabre Corpo and LUMN 45 15 JAN 29, you can compare the effects of market volatilities on Sabre Corpo and U1566PAD7 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 U1566PAD7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and U1566PAD7.

Diversification Opportunities for Sabre Corpo and U1566PAD7

0.56

Correlation Coefficient

Sabre Corpo  U1566PAD7

Very weak diversification

The 3 months correlation between Sabre and U1566PAD7 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and LUMN 45 15 JAN 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LUMN 45 15 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 U1566PAD7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LUMN 45 15 has no effect on the direction of Sabre Corpo i.e., Sabre Corpo and U1566PAD7 go up and down completely randomly.

Pair Corralation between Sabre Corpo and U1566PAD7

Given the investment horizon of 90 days Sabre Corpo is expected to generate 0.68 times more return on investment than U1566PAD7. However, Sabre Corpo is 1.48 times less risky than U1566PAD7. It trades about 0.03 of its potential returns per unit of risk. LUMN 45 15 JAN 29 is currently generating about -0.11 per unit of risk. If you would invest  368.00  in Sabre Corpo on September 26, 2024 and sell it today you would earn a total of  6.00  from holding Sabre Corpo or generate 1.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	52.38%
Values	Daily Returns

Sabre Corpo  vs.  LUMN 45 15 JAN 29

Sabre Corpo

Risk-Adjusted Performance

2 of 100

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 January 2025.

LUMN 45 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LUMN 45 15 JAN 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for LUMN 45 15 JAN 29 investors.

Pair Trading with Sabre Corpo and U1566PAD7

The main advantage of trading using opposite Sabre Corpo and U1566PAD7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo position performs unexpectedly, U1566PAD7 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 U1566PAD7 will offset losses from the drop in U1566PAD7's long position.

The idea behind Sabre Corpo and LUMN 45 15 JAN 29 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.