Correlation Between JB Hunt and Camellia Plc
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Camellia Plc 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 Camellia Plc 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 Camellia Plc, you can compare the effects of market volatilities on JB Hunt and Camellia Plc 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 Camellia Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Camellia Plc.
Diversification Opportunities for JB Hunt and Camellia Plc
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0J71 and Camellia is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Camellia Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camellia 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 Camellia Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camellia Plc has no effect on the direction of JB Hunt i.e., JB Hunt and Camellia Plc go up and down completely randomly.
Pair Corralation between JB Hunt and Camellia Plc
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Camellia Plc. In addition to that, JB Hunt is 2.02 times more volatile than Camellia Plc. It trades about -0.1 of its total potential returns per unit of risk. Camellia Plc is currently generating about -0.17 per unit of volatility. If you would invest 498,500 in Camellia Plc on October 12, 2024 and sell it today you would lose (11,500) from holding Camellia Plc or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Camellia Plc
Performance |
| Timeline |
| JB Hunt Transport |
| Camellia Plc |
JB Hunt and Camellia Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Camellia Plc
The main advantage of trading using opposite JB Hunt and Camellia Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Camellia Plc 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 Camellia Plc will offset losses from the drop in Camellia Plc's long position.| JB Hunt vs. Tyson Foods Cl | JB Hunt vs. Dairy Farm International | JB Hunt vs. Indutrade AB | JB Hunt vs. Norwegian Air Shuttle |
| Camellia Plc vs. Charter Communications Cl | Camellia Plc vs. JB Hunt Transport | Camellia Plc vs. Fonix Mobile plc | Camellia Plc vs. Virgin Wines UK |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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