Correlation Between JB Hunt and Henderson High
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Henderson High 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 Henderson High 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 Henderson High Income, you can compare the effects of market volatilities on JB Hunt and Henderson High 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 Henderson High. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Henderson High.
Diversification Opportunities for JB Hunt and Henderson High
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0J71 and Henderson is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Henderson High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson High Income 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 Henderson High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson High Income has no effect on the direction of JB Hunt i.e., JB Hunt and Henderson High go up and down completely randomly.
Pair Corralation between JB Hunt and Henderson High
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Henderson High. In addition to that, JB Hunt is 2.05 times more volatile than Henderson High Income. It trades about -0.23 of its total potential returns per unit of risk. Henderson High Income is currently generating about 0.15 per unit of volatility. If you would invest 16,275 in Henderson High Income on September 12, 2024 and sell it today you would earn a total of 400.00 from holding Henderson High Income or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Henderson High Income
Performance |
| Timeline |
| JB Hunt Transport |
| Henderson High Income |
JB Hunt and Henderson High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Henderson High
The main advantage of trading using opposite JB Hunt and Henderson High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Henderson High 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 Henderson High will offset losses from the drop in Henderson High's 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 |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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