Correlation Between Datagroup and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Datagroup 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 Datagroup and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datagroup SE and JB Hunt Transport, you can compare the effects of market volatilities on Datagroup 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 Datagroup with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagroup and JB Hunt.
Diversification Opportunities for Datagroup and JB Hunt
Significant diversification
The 3 months correlation between Datagroup and 0J71 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Datagroup SE 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 Datagroup 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 Datagroup SE 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 Datagroup i.e., Datagroup and JB Hunt go up and down completely randomly.
Pair Corralation between Datagroup and JB Hunt
Assuming the 90 days trading horizon Datagroup SE is expected to generate 1.59 times more return on investment than JB Hunt. However, Datagroup is 1.59 times more volatile than JB Hunt Transport. It trades about 0.15 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.11 per unit of risk. If you would invest 4,150 in Datagroup SE on September 3, 2024 and sell it today you would earn a total of 400.00 from holding Datagroup SE or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datagroup SE vs. JB Hunt Transport
Performance |
| Timeline |
| Datagroup SE |
| JB Hunt Transport |
Datagroup and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datagroup and JB Hunt
The main advantage of trading using opposite Datagroup and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datagroup 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.| Datagroup vs. Catalyst Media Group | Datagroup vs. CATLIN GROUP | Datagroup vs. RTW Venture Fund | Datagroup vs. Secure Property Development |
| JB Hunt vs. Taylor Maritime Investments | JB Hunt vs. Livermore Investments Group | JB Hunt vs. Austevoll Seafood ASA | JB Hunt vs. Bankers Investment Trust |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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