Correlation Between JB Hunt and Orient Telecoms
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Orient Telecoms 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 Orient Telecoms 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 Orient Telecoms, you can compare the effects of market volatilities on JB Hunt and Orient Telecoms 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 Orient Telecoms. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Orient Telecoms.
Diversification Opportunities for JB Hunt and Orient Telecoms
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0J71 and Orient is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Orient Telecoms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Telecoms 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 Orient Telecoms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Telecoms has no effect on the direction of JB Hunt i.e., JB Hunt and Orient Telecoms go up and down completely randomly.
Pair Corralation between JB Hunt and Orient Telecoms
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 0.78 times more return on investment than Orient Telecoms. However, JB Hunt Transport is 1.29 times less risky than Orient Telecoms. It trades about 0.02 of its potential returns per unit of risk. Orient Telecoms is currently generating about 0.01 per unit of risk. If you would invest 17,307 in JB Hunt Transport on October 14, 2024 and sell it today you would earn a total of 183.00 from holding JB Hunt Transport or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
JB Hunt Transport vs. Orient Telecoms
Performance |
| Timeline |
| JB Hunt Transport |
| Orient Telecoms |
JB Hunt and Orient Telecoms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Orient Telecoms
The main advantage of trading using opposite JB Hunt and Orient Telecoms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Orient Telecoms 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 Orient Telecoms will offset losses from the drop in Orient Telecoms' long position.| JB Hunt vs. Deltex Medical Group | JB Hunt vs. Travel Leisure Co | JB Hunt vs. Abingdon Health Plc | JB Hunt vs. Medical Properties Trust |
| Orient Telecoms vs. Monks Investment Trust | Orient Telecoms vs. Cairo Communication SpA | Orient Telecoms vs. Bankers Investment Trust | Orient Telecoms vs. Charter Communications Cl |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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