Correlation Between Sabre Insurance and INTNED

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

By analyzing existing cross correlation between Sabre Insurance Group and INTNED 14 01 JUL 26, you can compare the effects of market volatilities on Sabre Insurance and INTNED 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 Insurance with a short position of INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and INTNED.

Diversification Opportunities for Sabre Insurance and INTNED

0.0

Correlation Coefficient

Sabre Insurance  INTNED

Pay attention - limited upside

The 3 months correlation between Sabre and INTNED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and INTNED 14 01 JUL 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 14 01 and Sabre Insurance 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 Insurance Group are associated (or correlated) with INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 14 01 has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and INTNED go up and down completely randomly.

Pair Corralation between Sabre Insurance and INTNED

Assuming the 90 days horizon Sabre Insurance Group is expected to under-perform the INTNED. In addition to that, Sabre Insurance is 2.58 times more volatile than INTNED 14 01 JUL 26. It trades about -0.04 of its total potential returns per unit of risk. INTNED 14 01 JUL 26 is currently generating about 0.03 per unit of volatility. If you would invest  9,099  in INTNED 14 01 JUL 26 on October 1, 2024 and sell it today you would earn a total of  381.00  from holding INTNED 14 01 JUL 26 or generate 4.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	41.26%
Values	Daily Returns

Sabre Insurance Group  vs.  INTNED 14 01 JUL 26

Sabre Insurance Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sabre Insurance Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Sabre Insurance is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

INTNED 14 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 14 01 JUL 26 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 INTNED 14 01 JUL 26 investors.

Pair Trading with Sabre Insurance and INTNED

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

The idea behind Sabre Insurance Group and INTNED 14 01 JUL 26 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.