Correlation Between JB Hunt and Sealed Air
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Sealed Air 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 Sealed Air 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 Sealed Air Corp, you can compare the effects of market volatilities on JB Hunt and Sealed Air 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 Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Sealed Air.
Diversification Opportunities for JB Hunt and Sealed Air
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0J71 and Sealed is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Sealed Air Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air Corp 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 Sealed Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sealed Air Corp has no effect on the direction of JB Hunt i.e., JB Hunt and Sealed Air go up and down completely randomly.
Pair Corralation between JB Hunt and Sealed Air
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 1.27 times more return on investment than Sealed Air. However, JB Hunt is 1.27 times more volatile than Sealed Air Corp. It trades about 0.0 of its potential returns per unit of risk. Sealed Air Corp is currently generating about -0.03 per unit of risk. If you would invest 17,475 in JB Hunt Transport on October 24, 2024 and sell it today you would lose (146.00) from holding JB Hunt Transport or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.94% |
| Values | Daily Returns |
JB Hunt Transport vs. Sealed Air Corp
Performance |
| Timeline |
| JB Hunt Transport |
| Sealed Air Corp |
JB Hunt and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Sealed Air
The main advantage of trading using opposite JB Hunt and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Sealed Air 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 Sealed Air will offset losses from the drop in Sealed Air's long position.| JB Hunt vs. Blackrock World Mining | JB Hunt vs. Eastinco Mining Exploration | JB Hunt vs. Anglo Asian Mining | JB Hunt vs. iShares Physical Silver |
| Sealed Air vs. Kinnevik Investment AB | Sealed Air vs. Monks Investment Trust | Sealed Air vs. JB Hunt Transport | Sealed Air vs. Lowland Investment Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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