Correlation Between JB Hunt and Kaufman Et
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Kaufman Et 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 Kaufman Et 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 Kaufman Et Broad, you can compare the effects of market volatilities on JB Hunt and Kaufman Et 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 Kaufman Et. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Kaufman Et.
Diversification Opportunities for JB Hunt and Kaufman Et
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between 0J71 and Kaufman is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Kaufman Et Broad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaufman Et Broad 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 Kaufman Et. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaufman Et Broad has no effect on the direction of JB Hunt i.e., JB Hunt and Kaufman Et go up and down completely randomly.
Pair Corralation between JB Hunt and Kaufman Et
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 1.63 times more return on investment than Kaufman Et. However, JB Hunt is 1.63 times more volatile than Kaufman Et Broad. It trades about 0.1 of its potential returns per unit of risk. Kaufman Et Broad is currently generating about -0.31 per unit of risk. If you would invest 18,231 in JB Hunt Transport on September 2, 2024 and sell it today you would earn a total of 773.00 from holding JB Hunt Transport or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Kaufman Et Broad
Performance |
| Timeline |
| JB Hunt Transport |
| Kaufman Et Broad |
JB Hunt and Kaufman Et Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Kaufman Et
The main advantage of trading using opposite JB Hunt and Kaufman Et positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Kaufman Et 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 Kaufman Et will offset losses from the drop in Kaufman Et's long position.| JB Hunt vs. Uniper SE | JB Hunt vs. Mulberry Group PLC | JB Hunt vs. London Security Plc | JB Hunt vs. Triad Group PLC |
| Kaufman Et vs. Blackrock World Mining | Kaufman Et vs. GoldMining | Kaufman Et vs. AMG Advanced Metallurgical | Kaufman Et vs. Metals Exploration Plc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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