Correlation Between JB Hunt and Alior Bank
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Alior Bank 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 Alior Bank 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 Alior Bank SA, you can compare the effects of market volatilities on JB Hunt and Alior Bank 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 Alior Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Alior Bank.
Diversification Opportunities for JB Hunt and Alior Bank
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 0J71 and Alior is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Alior Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alior Bank SA 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 Alior Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alior Bank SA has no effect on the direction of JB Hunt i.e., JB Hunt and Alior Bank go up and down completely randomly.
Pair Corralation between JB Hunt and Alior Bank
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 1.47 times more return on investment than Alior Bank. However, JB Hunt is 1.47 times more volatile than Alior Bank SA. It trades about 0.01 of its potential returns per unit of risk. Alior Bank SA is currently generating about 0.01 per unit of risk. If you would invest 17,792 in JB Hunt Transport on September 14, 2024 and sell it today you would earn a total of 507.00 from holding JB Hunt Transport or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.77% |
| Values | Daily Returns |
JB Hunt Transport vs. Alior Bank SA
Performance |
| Timeline |
| JB Hunt Transport |
| Alior Bank SA |
JB Hunt and Alior Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Alior Bank
The main advantage of trading using opposite JB Hunt and Alior Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Alior Bank 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 Alior Bank will offset losses from the drop in Alior Bank's long position.| JB Hunt vs. Nordic Semiconductor ASA | JB Hunt vs. Silvercorp Metals | JB Hunt vs. Jacquet Metal Service | JB Hunt vs. Elmos Semiconductor SE |
| Alior Bank vs. Applied Materials | Alior Bank vs. Scandinavian Tobacco Group | Alior Bank vs. JB Hunt Transport | Alior Bank vs. Martin Marietta Materials |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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