Correlation Between AES Corp and JB Hunt
Can any of the company-specific risk be diversified away by investing in both AES Corp 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 AES Corp and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AES Corp and JB Hunt Transport, you can compare the effects of market volatilities on AES Corp 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 AES Corp with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of AES Corp and JB Hunt.
Diversification Opportunities for AES Corp and JB Hunt
Pay attention - limited upside
The 3 months correlation between AES and 0J71 is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding AES Corp 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 AES Corp 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 AES Corp 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 AES Corp i.e., AES Corp and JB Hunt go up and down completely randomly.
Pair Corralation between AES Corp and JB Hunt
Assuming the 90 days trading horizon AES Corp is expected to generate 1.49 times more return on investment than JB Hunt. However, AES Corp is 1.49 times more volatile than JB Hunt Transport. It trades about 0.03 of its potential returns per unit of risk. JB Hunt Transport is currently generating about -0.21 per unit of risk. If you would invest 1,340 in AES Corp on September 13, 2024 and sell it today you would earn a total of 15.00 from holding AES Corp or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AES Corp vs. JB Hunt Transport
Performance |
| Timeline |
| AES Corp |
| JB Hunt Transport |
AES Corp and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AES Corp and JB Hunt
The main advantage of trading using opposite AES Corp and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AES Corp 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.| AES Corp vs. Park Hotels Resorts | AES Corp vs. Scandinavian Tobacco Group | AES Corp vs. Melia Hotels | AES Corp vs. Lowland Investment Co |
| JB Hunt vs. Empire Metals Limited | JB Hunt vs. McEwen Mining | JB Hunt vs. AMG Advanced Metallurgical | JB Hunt vs. GreenX Metals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |