Correlation Between Agilent Technologies and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies 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 Agilent Technologies and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and JB Hunt Transport, you can compare the effects of market volatilities on Agilent Technologies 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 Agilent Technologies with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and JB Hunt.
Diversification Opportunities for Agilent Technologies and JB Hunt
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agilent and J1BH34 is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies 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 Agilent Technologies 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 Agilent Technologies 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 Agilent Technologies i.e., Agilent Technologies and JB Hunt go up and down completely randomly.
Pair Corralation between Agilent Technologies and JB Hunt
If you would invest 41,756 in Agilent Technologies on November 4, 2024 and sell it today you would earn a total of 2,510 from holding Agilent Technologies or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. JB Hunt Transport
Performance |
| Timeline |
| Agilent Technologies |
| JB Hunt Transport |
Agilent Technologies and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and JB Hunt
The main advantage of trading using opposite Agilent Technologies and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies 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.| Agilent Technologies vs. The Home Depot | Agilent Technologies vs. Verizon Communications | Agilent Technologies vs. Liberty Broadband | Agilent Technologies vs. Academy Sports and |
| JB Hunt vs. Multilaser Industrial SA | JB Hunt vs. Zoom Video Communications | JB Hunt vs. STAG Industrial, | JB Hunt vs. SK Telecom Co, |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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