Correlation Between JB Hunt and Bloomsbury Publishing
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Bloomsbury Publishing 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 Bloomsbury Publishing 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 Bloomsbury Publishing Plc, you can compare the effects of market volatilities on JB Hunt and Bloomsbury Publishing 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 Bloomsbury Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Bloomsbury Publishing.
Diversification Opportunities for JB Hunt and Bloomsbury Publishing
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 0J71 and Bloomsbury is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Bloomsbury Publishing Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomsbury Publishing Plc 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 Bloomsbury Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomsbury Publishing Plc has no effect on the direction of JB Hunt i.e., JB Hunt and Bloomsbury Publishing go up and down completely randomly.
Pair Corralation between JB Hunt and Bloomsbury Publishing
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Bloomsbury Publishing. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 1.2 times less risky than Bloomsbury Publishing. The stock trades about -0.04 of its potential returns per unit of risk. The Bloomsbury Publishing Plc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 46,491 in Bloomsbury Publishing Plc on November 3, 2024 and sell it today you would earn a total of 20,109 from holding Bloomsbury Publishing Plc or generate 43.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
JB Hunt Transport vs. Bloomsbury Publishing Plc
Performance |
| Timeline |
| JB Hunt Transport |
| Bloomsbury Publishing Plc |
JB Hunt and Bloomsbury Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Bloomsbury Publishing
The main advantage of trading using opposite JB Hunt and Bloomsbury Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Bloomsbury Publishing 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 Bloomsbury Publishing will offset losses from the drop in Bloomsbury Publishing's long position.| JB Hunt vs. Hecla Mining Co | JB Hunt vs. Thor Mining PLC | JB Hunt vs. Fortuna Silver Mines | JB Hunt vs. Silver Bullet Data |
| Bloomsbury Publishing vs. Sligro Food Group | Bloomsbury Publishing vs. Associated British Foods | Bloomsbury Publishing vs. Tyson Foods Cl | Bloomsbury Publishing vs. FC Investment Trust |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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