Pair Correlation Between Sabre and Yahoo

This module allows you to analyze existing cross correlation between Sabre Corporation and Yahoo Inc. You can compare the effects of market volatilities on Sabre and Yahoo 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 with a short position of Yahoo. See also your portfolio center. Please also check ongoing floating volatility patterns of Sabre and Yahoo.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Sabre Corp.  vs   Yahoo Inc.
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Sabre Corporation is expected to under-perform the Yahoo. In addition to that, Sabre is 1.49 times more volatile than Yahoo Inc. It trades about -0.02 of its total potential returns per unit of risk. Yahoo Inc is currently generating about 0.21 per unit of volatility. If you would invest  4,815  in Yahoo Inc on April 23, 2017 and sell it today you would earn a total of  216.00  from holding Yahoo Inc or generate 4.49% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Sabre and Yahoo
-0.11

Parameters

Time Period1 Month [change]
DirectionNegative SABR Moved Down vs YHOO
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Sabre

  
0 

Risk-Adjusted Performance

Over the last 30 days Sabre Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Yahoo Inc

  
14 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Yahoo Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.