Correlation Between COSCO SHIPPING and Sabra Health
Can any of the company-specific risk be diversified away by investing in both COSCO SHIPPING and Sabra Health 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 COSCO SHIPPING and Sabra Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSCO SHIPPING Holdings and Sabra Health Care, you can compare the effects of market volatilities on COSCO SHIPPING and Sabra Health 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 COSCO SHIPPING with a short position of Sabra Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSCO SHIPPING and Sabra Health.
Diversification Opportunities for COSCO SHIPPING and Sabra Health
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COSCO and Sabra is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING Holdings and Sabra Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Health Care and COSCO SHIPPING 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 COSCO SHIPPING Holdings are associated (or correlated) with Sabra Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Health Care has no effect on the direction of COSCO SHIPPING i.e., COSCO SHIPPING and Sabra Health go up and down completely randomly.
Pair Corralation between COSCO SHIPPING and Sabra Health
Assuming the 90 days horizon COSCO SHIPPING Holdings is expected to generate 1.46 times more return on investment than Sabra Health. However, COSCO SHIPPING is 1.46 times more volatile than Sabra Health Care. It trades about 0.18 of its potential returns per unit of risk. Sabra Health Care is currently generating about 0.03 per unit of risk. If you would invest 118.00 in COSCO SHIPPING Holdings on April 24, 2025 and sell it today you would earn a total of 34.00 from holding COSCO SHIPPING Holdings or generate 28.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
COSCO SHIPPING Holdings vs. Sabra Health Care
Performance |
Timeline |
COSCO SHIPPING Holdings |
Sabra Health Care |
COSCO SHIPPING and Sabra Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COSCO SHIPPING and Sabra Health
The main advantage of trading using opposite COSCO SHIPPING and Sabra Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSCO SHIPPING position performs unexpectedly, Sabra Health 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 Sabra Health will offset losses from the drop in Sabra Health's long position.COSCO SHIPPING vs. WillScot Mobile Mini | COSCO SHIPPING vs. FONIX MOBILE PLC | COSCO SHIPPING vs. TRADEGATE | COSCO SHIPPING vs. National Retail Properties |
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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 Stocks Directory module to find actively traded stocks across global markets.
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