Correlation Between JB Hunt and Seeing Machines
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Seeing Machines 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 Seeing Machines 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 Seeing Machines Limited, you can compare the effects of market volatilities on JB Hunt and Seeing Machines 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 Seeing Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Seeing Machines.
Diversification Opportunities for JB Hunt and Seeing Machines
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0J71 and Seeing is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Seeing Machines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seeing Machines 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 Seeing Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seeing Machines has no effect on the direction of JB Hunt i.e., JB Hunt and Seeing Machines go up and down completely randomly.
Pair Corralation between JB Hunt and Seeing Machines
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 0.42 times more return on investment than Seeing Machines. However, JB Hunt Transport is 2.38 times less risky than Seeing Machines. It trades about 0.14 of its potential returns per unit of risk. Seeing Machines Limited is currently generating about -0.2 per unit of risk. If you would invest 17,914 in JB Hunt Transport on August 30, 2024 and sell it today you would earn a total of 1,099 from holding JB Hunt Transport or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Seeing Machines Limited
Performance |
| Timeline |
| JB Hunt Transport |
| Seeing Machines |
JB Hunt and Seeing Machines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Seeing Machines
The main advantage of trading using opposite JB Hunt and Seeing Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Seeing Machines 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 Seeing Machines will offset losses from the drop in Seeing Machines' long position.| JB Hunt vs. Tungsten West PLC | JB Hunt vs. Argo Group Limited | JB Hunt vs. Hardide PLC | JB Hunt vs. Versarien PLC |
| Seeing Machines vs. Aberdeen Diversified Income | Seeing Machines vs. FC Investment Trust | Seeing Machines vs. Intuitive Investments Group | Seeing Machines 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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