Correlation Between ChinaCache International and Sabre Corpo
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
0.0 | 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 Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
ChinaCache International Holdi vs. Sabre Corpo
Performance |
Timeline |
ChinaCache International |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Sabre Corpo |
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.ChinaCache International vs. Stepan Company | ChinaCache International vs. Bank Of New | ChinaCache International vs. Ioneer Ltd American | ChinaCache International vs. Amkor Technology |
Sabre Corpo vs. TripAdvisor | Sabre Corpo vs. Thayer Ventures Acquisition | Sabre Corpo vs. Barnes Group | Sabre Corpo vs. Jacobs Solutions |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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