Correlation Between JB Hunt and Ethernity Networks
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Ethernity Networks 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 Ethernity Networks 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 Ethernity Networks, you can compare the effects of market volatilities on JB Hunt and Ethernity Networks 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 Ethernity Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Ethernity Networks.
Diversification Opportunities for JB Hunt and Ethernity Networks
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0J71 and Ethernity is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Ethernity Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ethernity Networks 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 Ethernity Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ethernity Networks has no effect on the direction of JB Hunt i.e., JB Hunt and Ethernity Networks go up and down completely randomly.
Pair Corralation between JB Hunt and Ethernity Networks
Assuming the 90 days trading horizon JB Hunt is expected to generate 127.18 times less return on investment than Ethernity Networks. But when comparing it to its historical volatility, JB Hunt Transport is 11.84 times less risky than Ethernity Networks. It trades about 0.0 of its potential returns per unit of risk. Ethernity Networks is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 178.00 in Ethernity Networks on September 12, 2024 and sell it today you would lose (166.00) from holding Ethernity Networks or give up 93.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.9% |
| Values | Daily Returns |
JB Hunt Transport vs. Ethernity Networks
Performance |
| Timeline |
| JB Hunt Transport |
| Ethernity Networks |
JB Hunt and Ethernity Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Ethernity Networks
The main advantage of trading using opposite JB Hunt and Ethernity Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Ethernity Networks 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 Ethernity Networks will offset losses from the drop in Ethernity Networks' long position.| JB Hunt vs. GreenX Metals | JB Hunt vs. Panther Metals PLC | JB Hunt vs. Empire Metals Limited | JB Hunt vs. Central Asia Metals |
| Ethernity Networks vs. CVS Health Corp | Ethernity Networks vs. JB Hunt Transport | Ethernity Networks vs. Zoom Video Communications | Ethernity Networks vs. Universal Music Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |