Correlation Between JB Hunt and 88 Energy
Can any of the company-specific risk be diversified away by investing in both JB Hunt and 88 Energy 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 88 Energy 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 88 Energy, you can compare the effects of market volatilities on JB Hunt and 88 Energy 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 88 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and 88 Energy.
Diversification Opportunities for JB Hunt and 88 Energy
Very good diversification
The 3 months correlation between 0J71 and 88E is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and 88 Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88 Energy 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 88 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88 Energy has no effect on the direction of JB Hunt i.e., JB Hunt and 88 Energy go up and down completely randomly.
Pair Corralation between JB Hunt and 88 Energy
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 1.06 times more return on investment than 88 Energy. However, JB Hunt is 1.06 times more volatile than 88 Energy. It trades about 0.1 of its potential returns per unit of risk. 88 Energy is currently generating about -0.23 per unit of risk. If you would invest 18,231 in JB Hunt Transport on September 2, 2024 and sell it today you would earn a total of 773.00 from holding JB Hunt Transport or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. 88 Energy
Performance |
| Timeline |
| JB Hunt Transport |
| 88 Energy |
JB Hunt and 88 Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and 88 Energy
The main advantage of trading using opposite JB Hunt and 88 Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, 88 Energy 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 88 Energy will offset losses from the drop in 88 Energy's long position.| JB Hunt vs. Uniper SE | JB Hunt vs. Mulberry Group PLC | JB Hunt vs. London Security Plc | JB Hunt vs. Triad Group PLC |
| 88 Energy vs. LPKF Laser Electronics | 88 Energy vs. Cairo Communication SpA | 88 Energy vs. STMicroelectronics NV | 88 Energy 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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