Correlation Between JB Hunt and BioNTech
Can any of the company-specific risk be diversified away by investing in both JB Hunt and BioNTech 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 JB Hunt and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JB Hunt Transport and BioNTech SE, you can compare the effects of market volatilities on JB Hunt and BioNTech 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 JB Hunt with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and BioNTech.
Diversification Opportunities for JB Hunt and BioNTech
Good diversification
The 3 months correlation between 0J71 and BioNTech is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and JB Hunt 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 JB Hunt Transport are associated (or correlated) with BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of JB Hunt i.e., JB Hunt and BioNTech go up and down completely randomly.
Pair Corralation between JB Hunt and BioNTech
Assuming the 90 days trading horizon JB Hunt is expected to generate 10.33 times less return on investment than BioNTech. But when comparing it to its historical volatility, JB Hunt Transport is 1.54 times less risky than BioNTech. It trades about 0.01 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10,043 in BioNTech SE on September 4, 2024 and sell it today you would earn a total of 1,738 from holding BioNTech SE or generate 17.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
JB Hunt Transport vs. BioNTech SE
Performance |
| Timeline |
| JB Hunt Transport |
| BioNTech SE |
JB Hunt and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and BioNTech
The main advantage of trading using opposite JB Hunt and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.| JB Hunt vs. Samsung Electronics Co | JB Hunt vs. Samsung Electronics Co | JB Hunt vs. Hyundai Motor | JB Hunt vs. Toyota Motor Corp |
| BioNTech vs. Empire Metals Limited | BioNTech vs. Take Two Interactive Software | BioNTech vs. Science in Sport | BioNTech vs. Ocean Harvest Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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