Correlation Between JB Hunt and Thor Mining
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Thor Mining 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 Thor Mining 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 Thor Mining PLC, you can compare the effects of market volatilities on JB Hunt and Thor Mining 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 Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Thor Mining.
Diversification Opportunities for JB Hunt and Thor Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between 0J71 and Thor is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Thor Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Mining 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 Thor Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Mining PLC has no effect on the direction of JB Hunt i.e., JB Hunt and Thor Mining go up and down completely randomly.
Pair Corralation between JB Hunt and Thor Mining
Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 0.47 times more return on investment than Thor Mining. However, JB Hunt Transport is 2.14 times less risky than Thor Mining. It trades about 0.09 of its potential returns per unit of risk. Thor Mining PLC is currently generating about -0.01 per unit of risk. If you would invest 17,396 in JB Hunt Transport on August 28, 2024 and sell it today you would earn a total of 1,548 from holding JB Hunt Transport or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Thor Mining PLC
Performance |
| Timeline |
| JB Hunt Transport |
| Thor Mining PLC |
JB Hunt and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Thor Mining
The main advantage of trading using opposite JB Hunt and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Thor Mining 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 Thor Mining will offset losses from the drop in Thor Mining's long position.| JB Hunt vs. Systemair AB | JB Hunt vs. Pentair PLC | JB Hunt vs. Panther Metals PLC | JB Hunt vs. Anglesey Mining |
| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Centamin PLC | Thor Mining vs. Atalaya 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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