Correlation Between JB Hunt and DXC Technology
Can any of the company-specific risk be diversified away by investing in both JB Hunt and DXC Technology 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 DXC Technology 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 DXC Technology Co, you can compare the effects of market volatilities on JB Hunt and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and DXC Technology.
Diversification Opportunities for JB Hunt and DXC Technology
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0J71 and DXC is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and DXC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of JB Hunt i.e., JB Hunt and DXC Technology go up and down completely randomly.
Pair Corralation between JB Hunt and DXC Technology
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the DXC Technology. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 1.35 times less risky than DXC Technology. The stock trades about -0.04 of its potential returns per unit of risk. The DXC Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,156 in DXC Technology Co on November 3, 2024 and sell it today you would lose (3.00) from holding DXC Technology Co or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.81% |
| Values | Daily Returns |
JB Hunt Transport vs. DXC Technology Co
Performance |
| Timeline |
| JB Hunt Transport |
| DXC Technology |
JB Hunt and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and DXC Technology
The main advantage of trading using opposite JB Hunt and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| JB Hunt vs. Hecla Mining Co | JB Hunt vs. Thor Mining PLC | JB Hunt vs. Fortuna Silver Mines | JB Hunt vs. Silver Bullet Data |
| DXC Technology vs. PPHE Hotel Group | DXC Technology vs. InterContinental Hotels Group | DXC Technology vs. Arrow Electronics | DXC Technology vs. Primary Health Properties |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |