Correlation Between Aston Martin and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Aston Martin 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 Aston Martin and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Martin Lagonda and JB Hunt Transport, you can compare the effects of market volatilities on Aston Martin 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 Aston Martin with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Martin and JB Hunt.
Diversification Opportunities for Aston Martin and JB Hunt
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aston and 0J71 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aston Martin Lagonda 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 Aston Martin 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 Aston Martin Lagonda 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 Aston Martin i.e., Aston Martin and JB Hunt go up and down completely randomly.
Pair Corralation between Aston Martin and JB Hunt
Assuming the 90 days trading horizon Aston Martin Lagonda is expected to under-perform the JB Hunt. In addition to that, Aston Martin is 1.85 times more volatile than JB Hunt Transport. It trades about -0.01 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.02 per unit of volatility. If you would invest 17,474 in JB Hunt Transport on September 5, 2024 and sell it today you would earn a total of 1,136 from holding JB Hunt Transport or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.98% |
| Values | Daily Returns |
Aston Martin Lagonda vs. JB Hunt Transport
Performance |
| Timeline |
| Aston Martin Lagonda |
| JB Hunt Transport |
Aston Martin and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston Martin and JB Hunt
The main advantage of trading using opposite Aston Martin and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Martin 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.| Aston Martin vs. JB Hunt Transport | Aston Martin vs. Fresenius Medical Care | Aston Martin vs. Lowland Investment Co | Aston Martin vs. Gaztransport et Technigaz |
| JB Hunt vs. Playtech Plc | JB Hunt vs. Orient Telecoms | JB Hunt vs. Gamma Communications PLC | JB Hunt vs. McEwen Mining |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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