Correlation Between Align Technology and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Align Technology 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 Align Technology and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Align Technology and JB Hunt Transport, you can compare the effects of market volatilities on Align Technology 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 Align Technology with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Align Technology and JB Hunt.
Diversification Opportunities for Align Technology and JB Hunt
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Align and J1BH34 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Align Technology 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 Align Technology 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 Align Technology 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 Align Technology i.e., Align Technology and JB Hunt go up and down completely randomly.
Pair Corralation between Align Technology and JB Hunt
If you would invest 32,703 in Align Technology on November 4, 2024 and sell it today you would earn a total of 623.00 from holding Align Technology or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Align Technology vs. JB Hunt Transport
Performance |
| Timeline |
| Align Technology |
| JB Hunt Transport |
Align Technology and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Align Technology and JB Hunt
The main advantage of trading using opposite Align Technology and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Align Technology 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.| Align Technology vs. Applied Materials, | Align Technology vs. Vulcan Materials | Align Technology vs. United Natural Foods, | Align Technology vs. Patria Investments Limited |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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