Correlation Between JB Hunt and Sparebanken Vest
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Sparebanken Vest 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 Sparebanken Vest 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 Sparebanken Vest, you can compare the effects of market volatilities on JB Hunt and Sparebanken Vest 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 Sparebanken Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Sparebanken Vest.
Diversification Opportunities for JB Hunt and Sparebanken Vest
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0J71 and Sparebanken is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Sparebanken Vest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebanken Vest 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 Sparebanken Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebanken Vest has no effect on the direction of JB Hunt i.e., JB Hunt and Sparebanken Vest go up and down completely randomly.
Pair Corralation between JB Hunt and Sparebanken Vest
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Sparebanken Vest. In addition to that, JB Hunt is 1.5 times more volatile than Sparebanken Vest. It trades about -0.12 of its total potential returns per unit of risk. Sparebanken Vest is currently generating about 0.23 per unit of volatility. If you would invest 13,192 in Sparebanken Vest on October 30, 2024 and sell it today you would earn a total of 1,136 from holding Sparebanken Vest or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.5% |
| Values | Daily Returns |
JB Hunt Transport vs. Sparebanken Vest
Performance |
| Timeline |
| JB Hunt Transport |
| Sparebanken Vest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
JB Hunt and Sparebanken Vest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Sparebanken Vest
The main advantage of trading using opposite JB Hunt and Sparebanken Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Sparebanken Vest 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 Sparebanken Vest will offset losses from the drop in Sparebanken Vest's long position.| JB Hunt vs. Take Two Interactive Software | JB Hunt vs. Cognizant Technology Solutions | JB Hunt vs. Nordic Semiconductor ASA | JB Hunt vs. Tatton Asset Management |
| Sparebanken Vest vs. Berkshire Hathaway | Sparebanken Vest vs. Samsung Electronics Co | Sparebanken Vest vs. Samsung Electronics Co | Sparebanken Vest vs. Chocoladefabriken Lindt Spruengli |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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