Correlation Between INTNED and Sabre Corpo

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

By analyzing existing cross correlation between INTNED 547761 01 APR 27 and Sabre Corpo, you can compare the effects of market volatilities on INTNED 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 INTNED with a short position of Sabre Corpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTNED and Sabre Corpo.

Diversification Opportunities for INTNED and Sabre Corpo

-0.21

Correlation Coefficient

INTNED  Sabre Corpo

Very good diversification

The 3 months correlation between INTNED and Sabre is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding INTNED 547761 01 APR 27 and Sabre Corpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Corpo and INTNED 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 INTNED 547761 01 APR 27 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 INTNED i.e., INTNED and Sabre Corpo go up and down completely randomly.

Pair Corralation between INTNED and Sabre Corpo

Assuming the 90 days trading horizon INTNED 547761 01 APR 27 is expected to under-perform the Sabre Corpo. But the bond apears to be less risky and, when comparing its historical volatility, INTNED 547761 01 APR 27 is 13.93 times less risky than Sabre Corpo. The bond trades about -0.29 of its potential returns per unit of risk. The Sabre Corpo is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  326.00  in Sabre Corpo on September 19, 2024 and sell it today you would earn a total of  70.00  from holding Sabre Corpo or generate 21.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	38.1%
Values	Daily Returns

INTNED 547761 01 APR 27  vs.  Sabre Corpo

INTNED 547761 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 547761 01 APR 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Sabre Corpo

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sabre Corpo are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, Sabre Corpo reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with INTNED and Sabre Corpo

The main advantage of trading using opposite INTNED and Sabre Corpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTNED 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 INTNED 547761 01 APR 27 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.