Correlation Between JB Hunt and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Sabre Insurance 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 JB Hunt and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JB Hunt Transport and Sabre Insurance Group, you can compare the effects of market volatilities on JB Hunt and Sabre Insurance 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 JB Hunt with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Sabre Insurance.
Diversification Opportunities for JB Hunt and Sabre Insurance
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0J71 and Sabre is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Sabre Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Insurance Group and JB Hunt 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 JB Hunt Transport are associated (or correlated) with Sabre Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Insurance Group has no effect on the direction of JB Hunt i.e., JB Hunt and Sabre Insurance go up and down completely randomly.
Pair Corralation between JB Hunt and Sabre Insurance
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Sabre Insurance. In addition to that, JB Hunt is 1.44 times more volatile than Sabre Insurance Group. It trades about -0.09 of its total potential returns per unit of risk. Sabre Insurance Group is currently generating about -0.13 per unit of volatility. If you would invest 13,840 in Sabre Insurance Group on November 8, 2024 and sell it today you would lose (520.00) from holding Sabre Insurance Group or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Sabre Insurance Group
Performance |
| Timeline |
| JB Hunt Transport |
| Sabre Insurance Group |
JB Hunt and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Sabre Insurance
The main advantage of trading using opposite JB Hunt and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Sabre Insurance 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 Sabre Insurance will offset losses from the drop in Sabre Insurance's long position.| JB Hunt vs. Everyman Media Group | JB Hunt vs. Ubisoft Entertainment | JB Hunt vs. Cembra Money Bank | JB Hunt vs. AcadeMedia AB |
| Sabre Insurance vs. LPKF Laser Electronics | Sabre Insurance vs. Liontrust Asset Management | Sabre Insurance vs. New Residential Investment | Sabre Insurance vs. The Mercantile 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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