Correlation Between Sandstorm Gold and Sabre Corpo

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

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

Diversification Opportunities for Sandstorm Gold and Sabre Corpo

-0.28

Correlation Coefficient

Sandstorm Gold  Sabre Corpo

Very good diversification

The 3 months correlation between Sandstorm and Sabre is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Sabre Corpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Corpo and Sandstorm Gold 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 Sandstorm Gold Ltd are associated (or correlated) with Sabre Corpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Corpo has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Sabre Corpo go up and down completely randomly.

Pair Corralation between Sandstorm Gold and Sabre Corpo

Given the investment horizon of 90 days Sandstorm Gold Ltd is expected to generate 0.59 times more return on investment than Sabre Corpo. However, Sandstorm Gold Ltd is 1.69 times less risky than Sabre Corpo. It trades about -0.13 of its potential returns per unit of risk. Sabre Corpo is currently generating about -0.08 per unit of risk. If you would invest  579.00  in Sandstorm Gold Ltd on September 29, 2024 and sell it today you would lose (32.00) from holding Sandstorm Gold Ltd or give up 5.53% of portfolio value over 90 days.

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

Sandstorm Gold Ltd  vs.  Sabre Corpo

Sandstorm Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sandstorm Gold Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Sabre Corpo

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sabre Corpo are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental drivers, Sabre Corpo is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Sandstorm Gold and Sabre Corpo

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

The idea behind Sandstorm Gold Ltd and Sabre Corpo 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.

Check out your portfolio center.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.