Correlation Between Amaroq Minerals and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Amaroq Minerals 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 Amaroq Minerals and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amaroq Minerals and JB Hunt Transport, you can compare the effects of market volatilities on Amaroq Minerals 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 Amaroq Minerals with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amaroq Minerals and JB Hunt.
Diversification Opportunities for Amaroq Minerals and JB Hunt
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amaroq and 0J71 is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Amaroq Minerals 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 Amaroq Minerals 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 Amaroq Minerals 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 Amaroq Minerals i.e., Amaroq Minerals and JB Hunt go up and down completely randomly.
Pair Corralation between Amaroq Minerals and JB Hunt
Assuming the 90 days trading horizon Amaroq Minerals is expected to under-perform the JB Hunt. In addition to that, Amaroq Minerals is 1.66 times more volatile than JB Hunt Transport. It trades about -0.02 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.06 per unit of volatility. If you would invest 17,037 in JB Hunt Transport on November 2, 2024 and sell it today you would earn a total of 346.00 from holding JB Hunt Transport or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amaroq Minerals vs. JB Hunt Transport
Performance |
| Timeline |
| Amaroq Minerals |
| JB Hunt Transport |
Amaroq Minerals and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amaroq Minerals and JB Hunt
The main advantage of trading using opposite Amaroq Minerals and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amaroq Minerals 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.| Amaroq Minerals vs. Finnair Oyj | Amaroq Minerals vs. Ryanair Holdings plc | Amaroq Minerals vs. Sealed Air Corp | Amaroq Minerals vs. EVS Broadcast Equipment |
| JB Hunt vs. Check Point Software | JB Hunt vs. Vitec Software Group | JB Hunt vs. Pfeiffer Vacuum Technology | JB Hunt vs. Accesso Technology Group |
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.
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