Correlation Between Jupiter Fund and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund 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 Jupiter Fund and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jupiter Fund Management and Sabre Insurance Group, you can compare the effects of market volatilities on Jupiter Fund 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 Jupiter Fund with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Sabre Insurance.
Diversification Opportunities for Jupiter Fund and Sabre Insurance
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and Sabre is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management 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 Jupiter Fund 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 Jupiter Fund Management 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 Jupiter Fund i.e., Jupiter Fund and Sabre Insurance go up and down completely randomly.
Pair Corralation between Jupiter Fund and Sabre Insurance
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Sabre Insurance. In addition to that, Jupiter Fund is 1.36 times more volatile than Sabre Insurance Group. It trades about -0.03 of its total potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.05 per unit of volatility. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Sabre Insurance Group
Performance |
| Timeline |
| Jupiter Fund Management |
| Sabre Insurance Group |
Jupiter Fund and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Sabre Insurance
The main advantage of trading using opposite Jupiter Fund and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund 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.| Jupiter Fund vs. Fortune Brands Home | Jupiter Fund vs. British American Tobacco | Jupiter Fund vs. New Residential Investment | Jupiter Fund vs. Taiwan Semiconductor Manufacturing |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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