Correlation Between ChinaCache International and Sabre Corpo

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Can any of the company-specific risk be diversified away by investing in both ChinaCache International 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 ChinaCache International and Sabre Corpo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChinaCache International Holdings and Sabre Corpo, you can compare the effects of market volatilities on ChinaCache International 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 ChinaCache International with a short position of Sabre Corpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChinaCache International and Sabre Corpo.

Diversification Opportunities for ChinaCache International and Sabre Corpo

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ChinaCache and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ChinaCache International Holdi and Sabre Corpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Corpo and ChinaCache International 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 ChinaCache International Holdings 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 ChinaCache International i.e., ChinaCache International and Sabre Corpo go up and down completely randomly.

Pair Corralation between ChinaCache International and Sabre Corpo

If you would invest (100.00) in ChinaCache International Holdings on December 30, 2023 and sell it today you would earn a total of  100.00  from holding ChinaCache International Holdings or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

ChinaCache International Holdi  vs.  Sabre Corpo

 Performance 
       Timeline  
ChinaCache International 

Risk-Adjusted Performance

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Over the last 90 days ChinaCache International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, ChinaCache International is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
Sabre Corpo 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Sabre Corpo has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in April 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

ChinaCache International and Sabre Corpo Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ChinaCache International and Sabre Corpo

The main advantage of trading using opposite ChinaCache International and Sabre Corpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChinaCache International 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 ChinaCache International Holdings 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.
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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