This module allows you to analyze existing cross correlation between Sabre Corporation and Alphabet Inc. You can compare the effects of market volatilities on Sabre and Alphabet 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 with a short position of Alphabet. See also your portfolio center
. Please also check ongoing floating volatility patterns of Sabre
Sabre Corp. vs Alphabet Inc.
Given the investment horizon of 30 days, Sabre Corporation is expected to under-perform the Alphabet. In addition to that, Sabre is 1.2 times more volatile than Alphabet Inc. It trades about -0.07 of its total potential returns per unit of risk. Alphabet Inc is currently generating about 0.06 per unit of volatility. If you would invest 82,321 in Alphabet Inc on February 28, 2017 and sell it today you would earn a total of 820.00 from holding Alphabet Inc or generate 1.0% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corp. and Alphabet Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alphabet Inc and Sabre 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 Corporation are associated (or correlated) with Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet Inc has no effect on the direction of Sabre i.e. Sabre and Alphabet go up and down completely randomly.
Over the last 30 days Sabre Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.