Correlation Between JLEN Environmental and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental 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 JLEN Environmental and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLEN Environmental Assets and Sabre Insurance Group, you can compare the effects of market volatilities on JLEN Environmental 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 JLEN Environmental with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Sabre Insurance.
Diversification Opportunities for JLEN Environmental and Sabre Insurance
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between JLEN and Sabre is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets 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 JLEN Environmental 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 JLEN Environmental Assets 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 JLEN Environmental i.e., JLEN Environmental and Sabre Insurance go up and down completely randomly.
Pair Corralation between JLEN Environmental and Sabre Insurance
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Sabre Insurance. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 1.29 times less risky than Sabre Insurance. The stock trades about -0.07 of its potential returns per unit of risk. The Sabre Insurance Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,090 in Sabre Insurance Group on October 30, 2024 and sell it today you would earn a total of 4,110 from holding Sabre Insurance Group or generate 45.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Sabre Insurance Group
Performance |
| Timeline |
| JLEN Environmental Assets |
| Sabre Insurance Group |
JLEN Environmental and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Sabre Insurance
The main advantage of trading using opposite JLEN Environmental and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental 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.| JLEN Environmental vs. Geely Automobile Holdings | JLEN Environmental vs. Flow Traders NV | JLEN Environmental vs. Games Workshop Group | JLEN Environmental vs. Charter Communications Cl |
| Sabre Insurance vs. Erste Group Bank | Sabre Insurance vs. Virgin Wines UK | Sabre Insurance vs. Synchrony Financial | Sabre Insurance vs. Ecclesiastical Insurance Office |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |