Correlation Between JB Hunt and Zegona Communications
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Zegona Communications 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 Zegona Communications 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 Zegona Communications Plc, you can compare the effects of market volatilities on JB Hunt and Zegona Communications 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 Zegona Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Zegona Communications.
Diversification Opportunities for JB Hunt and Zegona Communications
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 0J71 and Zegona is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Zegona Communications Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zegona Communications 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 Zegona Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zegona Communications Plc has no effect on the direction of JB Hunt i.e., JB Hunt and Zegona Communications go up and down completely randomly.
Pair Corralation between JB Hunt and Zegona Communications
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Zegona Communications. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 2.04 times less risky than Zegona Communications. The stock trades about -0.12 of its potential returns per unit of risk. The Zegona Communications Plc is currently generating about 0.62 of returns per unit of risk over similar time horizon. If you would invest 39,800 in Zegona Communications Plc on November 18, 2024 and sell it today you would earn a total of 17,200 from holding Zegona Communications Plc or generate 43.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Zegona Communications Plc
Performance |
| Timeline |
| JB Hunt Transport |
| Zegona Communications Plc |
JB Hunt and Zegona Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Zegona Communications
The main advantage of trading using opposite JB Hunt and Zegona Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Zegona Communications 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 Zegona Communications will offset losses from the drop in Zegona Communications' long position.| JB Hunt vs. Zoom Video Communications | JB Hunt vs. Zegona Communications Plc | JB Hunt vs. MTI Wireless Edge | JB Hunt vs. Scandinavian Tobacco Group |
| Zegona Communications vs. Foresight Environmental Infrastructure | Zegona Communications vs. Jupiter Fund Management | Zegona Communications vs. Iron Mountain | Zegona Communications vs. CVS Health Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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