Correlation Between Adriatic Metals and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Adriatic Metals 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 Adriatic Metals and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adriatic Metals and JB Hunt Transport, you can compare the effects of market volatilities on Adriatic Metals 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 Adriatic Metals with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adriatic Metals and JB Hunt.
Diversification Opportunities for Adriatic Metals and JB Hunt
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Adriatic and 0J71 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Adriatic Metals 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 Adriatic Metals 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 Adriatic Metals 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 Adriatic Metals i.e., Adriatic Metals and JB Hunt go up and down completely randomly.
Pair Corralation between Adriatic Metals and JB Hunt
Assuming the 90 days trading horizon Adriatic Metals is expected to under-perform the JB Hunt. In addition to that, Adriatic Metals is 1.21 times more volatile than JB Hunt Transport. It trades about -0.15 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about -0.1 per unit of volatility. If you would invest 18,281 in JB Hunt Transport on October 12, 2024 and sell it today you would lose (585.00) from holding JB Hunt Transport or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adriatic Metals vs. JB Hunt Transport
Performance |
| Timeline |
| Adriatic Metals |
| JB Hunt Transport |
Adriatic Metals and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adriatic Metals and JB Hunt
The main advantage of trading using opposite Adriatic Metals and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adriatic Metals 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.| Adriatic Metals vs. Givaudan SA | Adriatic Metals vs. Antofagasta PLC | Adriatic Metals vs. Ferrexpo PLC | Adriatic Metals vs. Atalaya Mining |
| JB Hunt vs. Clean Power Hydrogen | JB Hunt vs. Adriatic Metals | JB Hunt vs. Silver Bullet Data | JB Hunt vs. GoldMining |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |