Correlation Between Grieg Seafood and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and JB Hunt 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 Grieg Seafood and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and JB Hunt Transport, you can compare the effects of market volatilities on Grieg Seafood and JB Hunt 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 Grieg Seafood with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and JB Hunt.
Diversification Opportunities for Grieg Seafood and JB Hunt
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grieg and 0J71 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and JB Hunt Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JB Hunt Transport and Grieg Seafood 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 Grieg Seafood are associated (or correlated) with JB Hunt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JB Hunt Transport has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and JB Hunt go up and down completely randomly.
Pair Corralation between Grieg Seafood and JB Hunt
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 1.55 times less return on investment than JB Hunt. In addition to that, Grieg Seafood is 1.22 times more volatile than JB Hunt Transport. It trades about 0.06 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.11 per unit of volatility. If you would invest 17,912 in JB Hunt Transport on October 17, 2024 and sell it today you would earn a total of 618.00 from holding JB Hunt Transport or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grieg Seafood vs. JB Hunt Transport
Performance |
| Timeline |
| Grieg Seafood |
| JB Hunt Transport |
Grieg Seafood and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and JB Hunt
The main advantage of trading using opposite Grieg Seafood and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, JB Hunt 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 JB Hunt will offset losses from the drop in JB Hunt's long position.| Grieg Seafood vs. St Galler Kantonalbank | Grieg Seafood vs. Synchrony Financial | Grieg Seafood vs. National Beverage Corp | Grieg Seafood vs. FinecoBank SpA |
| JB Hunt vs. Grieg Seafood | JB Hunt vs. CAP LEASE AVIATION | JB Hunt vs. Synchrony Financial | JB Hunt vs. Sydbank |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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