Correlation Between Sabre Insurance and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Jupiter Fund 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 Sabre Insurance and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Insurance Group and Jupiter Fund Management, you can compare the effects of market volatilities on Sabre Insurance and Jupiter Fund 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 Insurance with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Jupiter Fund.
Diversification Opportunities for Sabre Insurance and Jupiter Fund
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sabre and Jupiter is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management and Sabre Insurance 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 Insurance Group are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Sabre Insurance i.e., Sabre Insurance and Jupiter Fund go up and down completely randomly.
Pair Corralation between Sabre Insurance and Jupiter Fund
Assuming the 90 days trading horizon Sabre Insurance Group is expected to generate 0.48 times more return on investment than Jupiter Fund. However, Sabre Insurance Group is 2.09 times less risky than Jupiter Fund. It trades about -0.18 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.15 per unit of risk. If you would invest 14,100 in Sabre Insurance Group on November 7, 2024 and sell it today you would lose (760.00) from holding Sabre Insurance Group or give up 5.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Insurance Group vs. Jupiter Fund Management
Performance |
| Timeline |
| Sabre Insurance Group |
| Jupiter Fund Management |
Sabre Insurance and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Insurance and Jupiter Fund
The main advantage of trading using opposite Sabre Insurance and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Sabre Insurance vs. Cairo Communication SpA | Sabre Insurance vs. Zegona Communications Plc | Sabre Insurance vs. Gamma Communications PLC | Sabre Insurance vs. Universal Display Corp |
| Jupiter Fund vs. European Metals Holdings | Jupiter Fund vs. FC Investment Trust | Jupiter Fund vs. Westlake Chemical Corp | Jupiter Fund vs. AMG Advanced Metallurgical |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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