Correlation Between Zurich Insurance and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and JB Hunt 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 Zurich Insurance and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zurich Insurance Group and JB Hunt Transport, you can compare the effects of market volatilities on Zurich Insurance and JB Hunt 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 Zurich Insurance with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and JB Hunt.
Diversification Opportunities for Zurich Insurance and JB Hunt
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zurich and 0J71 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and JB Hunt Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JB Hunt Transport and Zurich Insurance 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 Zurich Insurance Group are associated (or correlated) with JB Hunt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JB Hunt Transport has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and JB Hunt go up and down completely randomly.
Pair Corralation between Zurich Insurance and JB Hunt
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.47 times more return on investment than JB Hunt. However, Zurich Insurance Group is 2.15 times less risky than JB Hunt. It trades about -0.14 of its potential returns per unit of risk. JB Hunt Transport is currently generating about -0.14 per unit of risk. If you would invest 54,810 in Zurich Insurance Group on October 13, 2024 and sell it today you would lose (1,070) from holding Zurich Insurance Group or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. JB Hunt Transport
Performance |
| Timeline |
| Zurich Insurance |
| JB Hunt Transport |
Zurich Insurance and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and JB Hunt
The main advantage of trading using opposite Zurich Insurance and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, JB Hunt 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 JB Hunt will offset losses from the drop in JB Hunt's long position.| Zurich Insurance vs. AcadeMedia AB | Zurich Insurance vs. Liberty Media Corp | Zurich Insurance vs. One Media iP | Zurich Insurance vs. Coor Service Management |
| JB Hunt vs. Empire Metals Limited | JB Hunt vs. Liontrust Asset Management | JB Hunt vs. Wheaton Precious Metals | JB Hunt vs. Zurich Insurance Group |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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