Correlation Between JB Hunt and Impax Asset
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Impax Asset 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 Impax Asset 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 Impax Asset Management, you can compare the effects of market volatilities on JB Hunt and Impax Asset 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 Impax Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Impax Asset.
Diversification Opportunities for JB Hunt and Impax Asset
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0J71 and Impax is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management 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 Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of JB Hunt i.e., JB Hunt and Impax Asset go up and down completely randomly.
Pair Corralation between JB Hunt and Impax Asset
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 0.73 times more return on investment than Impax Asset. However, JB Hunt Transport is 1.38 times less risky than Impax Asset. It trades about 0.06 of its potential returns per unit of risk. Impax Asset Management is currently generating about -0.2 per unit of risk. If you would invest 17,037 in JB Hunt Transport on November 3, 2024 and sell it today you would earn a total of 389.00 from holding JB Hunt Transport or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Impax Asset Management
Performance |
| Timeline |
| JB Hunt Transport |
| Impax Asset Management |
JB Hunt and Impax Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Impax Asset
The main advantage of trading using opposite JB Hunt and Impax Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Impax Asset 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 Impax Asset will offset losses from the drop in Impax Asset'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 |
| Impax Asset vs. URU Metals | Impax Asset vs. European Metals Holdings | Impax Asset vs. Charter Communications Cl | Impax Asset vs. GreenX Metals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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