Correlation Between JB Hunt and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both JB Hunt and GreenX Metals 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 GreenX Metals 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 GreenX Metals, you can compare the effects of market volatilities on JB Hunt and GreenX Metals 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and GreenX Metals.
Diversification Opportunities for JB Hunt and GreenX Metals
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 0J71 and GreenX is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of JB Hunt i.e., JB Hunt and GreenX Metals go up and down completely randomly.
Pair Corralation between JB Hunt and GreenX Metals
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 0.75 times more return on investment than GreenX Metals. However, JB Hunt Transport is 1.32 times less risky than GreenX Metals. It trades about 0.15 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.22 per unit of risk. If you would invest 17,770 in JB Hunt Transport on August 28, 2024 and sell it today you would earn a total of 1,174 from holding JB Hunt Transport or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
JB Hunt Transport vs. GreenX Metals
Performance |
| Timeline |
| JB Hunt Transport |
| GreenX Metals |
JB Hunt and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and GreenX Metals
The main advantage of trading using opposite JB Hunt and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| JB Hunt vs. Systemair AB | JB Hunt vs. Pentair PLC | JB Hunt vs. Panther Metals PLC | JB Hunt vs. Anglesey Mining |
| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Atalaya Mining | GreenX Metals vs. Amaroq Minerals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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