Correlation Between JB Hunt and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Magnora ASA 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 Magnora ASA 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 Magnora ASA, you can compare the effects of market volatilities on JB Hunt and Magnora ASA 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 Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Magnora ASA.
Diversification Opportunities for JB Hunt and Magnora ASA
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0J71 and Magnora is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA 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 Magnora ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnora ASA has no effect on the direction of JB Hunt i.e., JB Hunt and Magnora ASA go up and down completely randomly.
Pair Corralation between JB Hunt and Magnora ASA
If you would invest (100.00) in Magnora ASA on November 8, 2024 and sell it today you would earn a total of 100.00 from holding Magnora ASA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Magnora ASA
Performance |
| Timeline |
| JB Hunt Transport |
| Magnora ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
JB Hunt and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Magnora ASA
The main advantage of trading using opposite JB Hunt and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Magnora ASA 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 Magnora ASA will offset losses from the drop in Magnora ASA's long position.| JB Hunt vs. Everyman Media Group | JB Hunt vs. Ubisoft Entertainment | JB Hunt vs. Cembra Money Bank | JB Hunt vs. AcadeMedia AB |
| Magnora ASA vs. United States Steel | Magnora ASA vs. Cornish Metals | Magnora ASA vs. Adriatic Metals | Magnora ASA vs. GreenX Metals |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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