Correlation Between Indutrade and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Indutrade 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 Indutrade and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indutrade AB and JB Hunt Transport, you can compare the effects of market volatilities on Indutrade 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 Indutrade with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indutrade and JB Hunt.
Diversification Opportunities for Indutrade and JB Hunt
Very good diversification
The 3 months correlation between Indutrade and 0J71 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Indutrade AB 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 Indutrade 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 Indutrade AB 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 Indutrade i.e., Indutrade and JB Hunt go up and down completely randomly.
Pair Corralation between Indutrade and JB Hunt
Assuming the 90 days trading horizon Indutrade AB is expected to generate 0.95 times more return on investment than JB Hunt. However, Indutrade AB is 1.06 times less risky than JB Hunt. It trades about 0.04 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.0 per unit of risk. If you would invest 22,514 in Indutrade AB on October 11, 2024 and sell it today you would earn a total of 5,826 from holding Indutrade AB or generate 25.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.19% |
| Values | Daily Returns |
Indutrade AB vs. JB Hunt Transport
Performance |
| Timeline |
| Indutrade AB |
| JB Hunt Transport |
Indutrade and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indutrade and JB Hunt
The main advantage of trading using opposite Indutrade and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indutrade 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.| Indutrade vs. Air Products Chemicals | Indutrade vs. Wizz Air Holdings | Indutrade vs. United Airlines Holdings | Indutrade vs. Infrastrutture Wireless Italiane |
| JB Hunt vs. Tyson Foods Cl | JB Hunt vs. Dairy Farm International | JB Hunt vs. Indutrade AB | JB Hunt vs. Norwegian Air Shuttle |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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