Correlation Between Sabre Insurance and AFRICAN MEDIA

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

Diversification Opportunities for Sabre Insurance and AFRICAN MEDIA

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Sabre and AFRICAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and AFRICAN MEDIA ENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFRICAN MEDIA ENT and Sabre Insurance 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 Insurance Group are associated (or correlated) with AFRICAN MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFRICAN MEDIA ENT has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and AFRICAN MEDIA go up and down completely randomly.

Pair Corralation between Sabre Insurance and AFRICAN MEDIA

If you would invest  131.00  in AFRICAN MEDIA ENT on September 10, 2025 and sell it today you would earn a total of  0.00  from holding AFRICAN MEDIA ENT or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Sabre Insurance Group  vs.  AFRICAN MEDIA ENT

 Performance 
       Timeline  
Sabre Insurance Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Sabre Insurance Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Sabre Insurance is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
AFRICAN MEDIA ENT 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days AFRICAN MEDIA ENT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, AFRICAN MEDIA is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Sabre Insurance and AFRICAN MEDIA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sabre Insurance and AFRICAN MEDIA

The main advantage of trading using opposite Sabre Insurance and AFRICAN MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, AFRICAN MEDIA 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 AFRICAN MEDIA will offset losses from the drop in AFRICAN MEDIA's long position.
The idea behind Sabre Insurance Group and AFRICAN MEDIA ENT 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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