Correlation Between Sabra Health and Intel
Can any of the company-specific risk be diversified away by investing in both Sabra Health and Intel 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 Sabra Health and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabra Health Care and Intel, you can compare the effects of market volatilities on Sabra Health and Intel 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 Sabra Health with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and Intel.
Diversification Opportunities for Sabra Health and Intel
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabra and Intel is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Sabra Health 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 Sabra Health Care are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Sabra Health i.e., Sabra Health and Intel go up and down completely randomly.
Pair Corralation between Sabra Health and Intel
Assuming the 90 days horizon Sabra Health is expected to generate 33.16 times less return on investment than Intel. But when comparing it to its historical volatility, Sabra Health Care is 2.23 times less risky than Intel. It trades about 0.0 of its potential returns per unit of risk. Intel is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,935 in Intel on December 28, 2024 and sell it today you would earn a total of 207.00 from holding Intel or generate 10.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sabra Health Care vs. Intel
Performance |
Timeline |
Sabra Health Care |
Intel |
Sabra Health and Intel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sabra Health and Intel
The main advantage of trading using opposite Sabra Health and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.Sabra Health vs. ALERION CLEANPOWER | Sabra Health vs. EIDESVIK OFFSHORE NK | Sabra Health vs. SOLSTAD OFFSHORE NK | Sabra Health vs. GEELY AUTOMOBILE |
Intel vs. CapitaLand Investment Limited | Intel vs. Harmony Gold Mining | Intel vs. ARDAGH METAL PACDL 0001 | Intel vs. Keck Seng Investments |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |