This module allows you to analyze existing cross correlation between Sabre Corporation and Yahoo Inc. You can compare the effects of market volatilities on Sabre and Yahoo 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 Yahoo. See also your portfolio center
. Please also check ongoing floating volatility patterns of Sabre
Sabre Corp. vs Yahoo Inc.
Given the investment horizon of 30 days, Sabre Corporation is expected to under-perform the Yahoo. In addition to that, Sabre is 1.23 times more volatile than Yahoo Inc. It trades about -0.07 of its total potential returns per unit of risk. Yahoo Inc is currently generating about 0.15 per unit of volatility. If you would invest 4,566 in Yahoo Inc on February 28, 2017 and sell it today you would earn a total of 112.00 from holding Yahoo Inc or generate 2.45% return on investment over 30 days.
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Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corp. and Yahoo Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Yahoo 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 Yahoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yahoo Inc has no effect on the direction of Sabre i.e. Sabre and Yahoo 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 Yahoo Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.