Correlation Between JB Hunt and Seraphim Space
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Seraphim Space 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 Seraphim Space 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 Seraphim Space Investment, you can compare the effects of market volatilities on JB Hunt and Seraphim Space 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 Seraphim Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Seraphim Space.
Diversification Opportunities for JB Hunt and Seraphim Space
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between 0J71 and Seraphim is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Seraphim Space Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seraphim Space Investment 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 Seraphim Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seraphim Space Investment has no effect on the direction of JB Hunt i.e., JB Hunt and Seraphim Space go up and down completely randomly.
Pair Corralation between JB Hunt and Seraphim Space
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 0.87 times more return on investment than Seraphim Space. However, JB Hunt Transport is 1.15 times less risky than Seraphim Space. It trades about -0.1 of its potential returns per unit of risk. Seraphim Space Investment is currently generating about -0.33 per unit of risk. If you would invest 18,281 in JB Hunt Transport on October 12, 2024 and sell it today you would lose (585.00) from holding JB Hunt Transport or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Seraphim Space Investment
Performance |
| Timeline |
| JB Hunt Transport |
| Seraphim Space Investment |
JB Hunt and Seraphim Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Seraphim Space
The main advantage of trading using opposite JB Hunt and Seraphim Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Seraphim Space 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 Seraphim Space will offset losses from the drop in Seraphim Space's long position.| JB Hunt vs. Clean Power Hydrogen | JB Hunt vs. Adriatic Metals | JB Hunt vs. Silver Bullet Data | JB Hunt vs. GoldMining |
| Seraphim Space vs. Systemair AB | Seraphim Space vs. Norman Broadbent Plc | Seraphim Space vs. JB Hunt Transport | Seraphim Space vs. Coeur Mining |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |