Correlation Between JB Hunt and Mid Wynd
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Mid Wynd 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 Mid Wynd 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 Mid Wynd International, you can compare the effects of market volatilities on JB Hunt and Mid Wynd 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 Mid Wynd. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Mid Wynd.
Diversification Opportunities for JB Hunt and Mid Wynd
Poor diversification
The 3 months correlation between 0J71 and Mid is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Mid Wynd International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Wynd International 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 Mid Wynd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Wynd International has no effect on the direction of JB Hunt i.e., JB Hunt and Mid Wynd go up and down completely randomly.
Pair Corralation between JB Hunt and Mid Wynd
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 2.6 times more return on investment than Mid Wynd. However, JB Hunt is 2.6 times more volatile than Mid Wynd International. It trades about 0.09 of its potential returns per unit of risk. Mid Wynd International is currently generating about 0.1 per unit of risk. If you would invest 15,794 in JB Hunt Transport on September 1, 2024 and sell it today you would earn a total of 3,210 from holding JB Hunt Transport or generate 20.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
JB Hunt Transport vs. Mid Wynd International
Performance |
| Timeline |
| JB Hunt Transport |
| Mid Wynd International |
JB Hunt and Mid Wynd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Mid Wynd
The main advantage of trading using opposite JB Hunt and Mid Wynd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Mid Wynd 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 Mid Wynd will offset losses from the drop in Mid Wynd's long position.| JB Hunt vs. Bankers Investment Trust | JB Hunt vs. Beeks Trading | JB Hunt vs. Leroy Seafood Group | JB Hunt vs. Hilton Food Group |
| Mid Wynd vs. Bellevue Healthcare Trust | Mid Wynd vs. United Utilities Group | Mid Wynd vs. Primary Health Properties | Mid Wynd vs. Infrastrutture Wireless Italiane |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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