Correlation Between Sobr Safe and Garmin

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

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

Diversification Opportunities for Sobr Safe and Garmin

0.02

Correlation Coefficient

Sobr Safe  Garmin

Significant diversification

The 3 months correlation between Sobr and Garmin is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sobr Safe and Garmin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garmin and Sobr Safe 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 Sobr Safe are associated (or correlated) with Garmin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garmin has no effect on the direction of Sobr Safe i.e., Sobr Safe and Garmin go up and down completely randomly.

Pair Corralation between Sobr Safe and Garmin

Given the investment horizon of 90 days Sobr Safe is expected to under-perform the Garmin. In addition to that, Sobr Safe is 4.89 times more volatile than Garmin. It trades about -0.03 of its total potential returns per unit of risk. Garmin is currently generating about 0.01 per unit of volatility. If you would invest  20,824  in Garmin on December 20, 2024 and sell it today you would earn a total of  53.00  from holding Garmin or generate 0.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sobr Safe  vs.  Garmin

Sobr Safe

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sobr Safe has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Garmin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Garmin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Garmin is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Sobr Safe and Garmin

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

The idea behind Sobr Safe and Garmin 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.