Correlation Between JB Hunt and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both JB Hunt and EVS Broadcast 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 EVS Broadcast 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 EVS Broadcast Equipment, you can compare the effects of market volatilities on JB Hunt and EVS Broadcast 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 EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and EVS Broadcast.
Diversification Opportunities for JB Hunt and EVS Broadcast
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0J71 and EVS is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment 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 EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of JB Hunt i.e., JB Hunt and EVS Broadcast go up and down completely randomly.
Pair Corralation between JB Hunt and EVS Broadcast
Assuming the 90 days trading horizon JB Hunt is expected to generate 1.74 times less return on investment than EVS Broadcast. In addition to that, JB Hunt is 1.33 times more volatile than EVS Broadcast Equipment. It trades about 0.04 of its total potential returns per unit of risk. EVS Broadcast Equipment is currently generating about 0.1 per unit of volatility. If you would invest 2,706 in EVS Broadcast Equipment on November 3, 2024 and sell it today you would earn a total of 439.00 from holding EVS Broadcast Equipment or generate 16.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
JB Hunt Transport vs. EVS Broadcast Equipment
Performance |
| Timeline |
| JB Hunt Transport |
| EVS Broadcast Equipment |
JB Hunt and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and EVS Broadcast
The main advantage of trading using opposite JB Hunt and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast'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 |
| EVS Broadcast vs. Gruppo MutuiOnline SpA | EVS Broadcast vs. Fidelity National Information | EVS Broadcast vs. Gaming Realms plc | EVS Broadcast vs. JB Hunt Transport |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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