Correlation Between JB Hunt and Cairo Communication
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Cairo Communication 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 Cairo Communication 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 Cairo Communication SpA, you can compare the effects of market volatilities on JB Hunt and Cairo Communication 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 Cairo Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Cairo Communication.
Diversification Opportunities for JB Hunt and Cairo Communication
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0J71 and Cairo is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Cairo Communication SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cairo Communication SpA 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 Cairo Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cairo Communication SpA has no effect on the direction of JB Hunt i.e., JB Hunt and Cairo Communication go up and down completely randomly.
Pair Corralation between JB Hunt and Cairo Communication
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Cairo Communication. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 1.03 times less risky than Cairo Communication. The stock trades about -0.2 of its potential returns per unit of risk. The Cairo Communication SpA is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 253.00 in Cairo Communication SpA on November 29, 2024 and sell it today you would earn a total of 32.00 from holding Cairo Communication SpA or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Cairo Communication SpA
Performance |
| Timeline |
| JB Hunt Transport |
| Cairo Communication SpA |
JB Hunt and Cairo Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Cairo Communication
The main advantage of trading using opposite JB Hunt and Cairo Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Cairo Communication 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 Cairo Communication will offset losses from the drop in Cairo Communication's long position.| JB Hunt vs. Ecclesiastical Insurance Office | JB Hunt vs. Bellevue Healthcare Trust | JB Hunt vs. PureTech Health plc | JB Hunt vs. Taiwan Semiconductor Manufacturing |
| Cairo Communication vs. Sligro Food Group | Cairo Communication vs. Grieg Seafood | Cairo Communication vs. Rosslyn Data Technologies | Cairo Communication vs. Edita Food Industries |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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