Correlation Between JB Hunt and Panther Metals
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Panther 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 Panther 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 Panther Metals PLC, you can compare the effects of market volatilities on JB Hunt and Panther 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 Panther Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Panther Metals.
Diversification Opportunities for JB Hunt and Panther Metals
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0J71 and Panther is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Panther Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panther Metals PLC 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 Panther Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panther Metals PLC has no effect on the direction of JB Hunt i.e., JB Hunt and Panther Metals go up and down completely randomly.
Pair Corralation between JB Hunt and Panther Metals
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Panther Metals. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 2.35 times less risky than Panther Metals. The stock trades about -0.14 of its potential returns per unit of risk. The Panther Metals PLC is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 9,000 in Panther Metals PLC on October 13, 2024 and sell it today you would lose (250.00) from holding Panther Metals PLC or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Panther Metals PLC
Performance |
| Timeline |
| JB Hunt Transport |
| Panther Metals PLC |
JB Hunt and Panther Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Panther Metals
The main advantage of trading using opposite JB Hunt and Panther Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Panther 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 Panther Metals will offset losses from the drop in Panther Metals' long position.| JB Hunt vs. Empire Metals Limited | JB Hunt vs. Liontrust Asset Management | JB Hunt vs. Wheaton Precious Metals | JB Hunt vs. Zurich Insurance Group |
| Panther Metals vs. Xeros Technology Group | Panther Metals vs. Electronic Arts | Panther Metals vs. Learning Technologies Group | Panther Metals vs. JB Hunt Transport |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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