Correlation Between Sabre Corpo and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both Sabre Corpo and Meta Platforms 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 Corpo and Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Corpo and Meta Platforms, you can compare the effects of market volatilities on Sabre Corpo and Meta Platforms 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 Corpo with a short position of Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Meta Platforms.
Diversification Opportunities for Sabre Corpo and Meta Platforms
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sabre and Meta is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms and Sabre Corpo 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 Corpo are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Sabre Corpo i.e., Sabre Corpo and Meta Platforms go up and down completely randomly.
Pair Corralation between Sabre Corpo and Meta Platforms
Given the investment horizon of 90 days Sabre Corpo is expected to generate 1.35 times more return on investment than Meta Platforms. However, Sabre Corpo is 1.35 times more volatile than Meta Platforms. It trades about -0.03 of its potential returns per unit of risk. Meta Platforms is currently generating about -0.13 per unit of risk. If you would invest 867.00 in Sabre Corpo on January 26, 2024 and sell it today you would lose (591.00) from holding Sabre Corpo or give up 68.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 7.29% |
Values | Daily Returns |
Sabre Corpo vs. Meta Platforms
Performance |
Timeline |
Sabre Corpo |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sabre Corpo and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sabre Corpo and Meta Platforms
The main advantage of trading using opposite Sabre Corpo and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar Corp |
Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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