Correlation Between Dolly Varden and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Dolly Varden 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 Dolly Varden and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dolly Varden Silver and JB Hunt Transport, you can compare the effects of market volatilities on Dolly Varden 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 Dolly Varden with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolly Varden and JB Hunt.
Diversification Opportunities for Dolly Varden and JB Hunt
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dolly and 0J71 is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dolly Varden Silver 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 Dolly Varden 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 Dolly Varden Silver 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 Dolly Varden i.e., Dolly Varden and JB Hunt go up and down completely randomly.
Pair Corralation between Dolly Varden and JB Hunt
Assuming the 90 days trading horizon Dolly Varden Silver is expected to under-perform the JB Hunt. In addition to that, Dolly Varden is 2.14 times more volatile than JB Hunt Transport. It trades about -0.25 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.11 per unit of volatility. If you would invest 18,120 in JB Hunt Transport on September 1, 2024 and sell it today you would earn a total of 884.00 from holding JB Hunt Transport or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Dolly Varden Silver vs. JB Hunt Transport
Performance |
| Timeline |
| Dolly Varden Silver |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| JB Hunt Transport |
Dolly Varden and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolly Varden and JB Hunt
The main advantage of trading using opposite Dolly Varden and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolly Varden 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.| Dolly Varden vs. PPHE Hotel Group | Dolly Varden vs. Infrastrutture Wireless Italiane | Dolly Varden vs. Trainline Plc | Dolly Varden vs. Gear4music Plc |
| JB Hunt vs. Bankers Investment Trust | JB Hunt vs. Beeks Trading | JB Hunt vs. Leroy Seafood Group | JB Hunt vs. Hilton Food 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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