Correlation Between JB Hunt and Sydbank
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Sydbank 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 Sydbank 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 Sydbank, you can compare the effects of market volatilities on JB Hunt and Sydbank 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 Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Sydbank.
Diversification Opportunities for JB Hunt and Sydbank
Excellent diversification
The 3 months correlation between 0J71 and Sydbank is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank 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 Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of JB Hunt i.e., JB Hunt and Sydbank go up and down completely randomly.
Pair Corralation between JB Hunt and Sydbank
Assuming the 90 days trading horizon JB Hunt is expected to generate 1.7 times less return on investment than Sydbank. In addition to that, JB Hunt is 1.06 times more volatile than Sydbank. It trades about 0.04 of its total potential returns per unit of risk. Sydbank is currently generating about 0.08 per unit of volatility. If you would invest 33,280 in Sydbank on November 3, 2024 and sell it today you would earn a total of 4,970 from holding Sydbank or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
JB Hunt Transport vs. Sydbank
Performance |
| Timeline |
| JB Hunt Transport |
| Sydbank |
JB Hunt and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Sydbank
The main advantage of trading using opposite JB Hunt and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Sydbank 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 Sydbank will offset losses from the drop in Sydbank's long position.| JB Hunt vs. Naked Wines plc | JB Hunt vs. European Metals Holdings | JB Hunt vs. Atalaya Mining | JB Hunt vs. Endeavour Mining Corp |
| Sydbank vs. Kaufman Et Broad | Sydbank vs. Indutrade AB | Sydbank vs. Clean Power Hydrogen | Sydbank vs. Take Two Interactive Software |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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