Correlation Between Sabre Corpo and Unisys

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

By analyzing existing cross correlation between Sabre Corpo and Unisys, you can compare the effects of market volatilities on Sabre Corpo and Unisys 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 Unisys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Unisys.

Diversification Opportunities for Sabre Corpo and Unisys

0.85

Correlation Coefficient

Sabre Corpo  Unisys

Very poor diversification

The 3 months correlation between Sabre and Unisys is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and Unisys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisys 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 Unisys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisys has no effect on the direction of Sabre Corpo i.e., Sabre Corpo and Unisys go up and down completely randomly.

Pair Corralation between Sabre Corpo and Unisys

Given the investment horizon of 90 days Sabre Corpo is expected to under-perform the Unisys. But the stock apears to be less risky and, when comparing its historical volatility, Sabre Corpo is 1.07 times less risky than Unisys. The stock trades about -0.02 of its potential returns per unit of risk. The Unisys is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,193  in Unisys on January 20, 2024 and sell it today you would lose (644.00) from holding Unisys or give up 53.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Sabre Corpo  vs.  Unisys

Sabre Corpo

Risk-Adjusted Performance

0 of 100

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 unsteady performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in May 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Unisys

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Unisys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Sabre Corpo and Unisys

The main advantage of trading using opposite Sabre Corpo and Unisys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo position performs unexpectedly, Unisys 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 Unisys will offset losses from the drop in Unisys' long position.

The idea behind Sabre Corpo and Unisys 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.