Correlation Between Andrews Sykes and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Andrews Sykes 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 Andrews Sykes and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andrews Sykes Group and JB Hunt Transport, you can compare the effects of market volatilities on Andrews Sykes 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 Andrews Sykes with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andrews Sykes and JB Hunt.
Diversification Opportunities for Andrews Sykes and JB Hunt
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Andrews and 0J71 is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Andrews Sykes Group 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 Andrews Sykes 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 Andrews Sykes Group 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 Andrews Sykes i.e., Andrews Sykes and JB Hunt go up and down completely randomly.
Pair Corralation between Andrews Sykes and JB Hunt
Assuming the 90 days trading horizon Andrews Sykes Group is expected to generate 0.76 times more return on investment than JB Hunt. However, Andrews Sykes Group is 1.31 times less risky than JB Hunt. It trades about 0.04 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.02 per unit of risk. If you would invest 40,820 in Andrews Sykes Group on September 4, 2024 and sell it today you would earn a total of 10,430 from holding Andrews Sykes Group or generate 25.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.82% |
| Values | Daily Returns |
Andrews Sykes Group vs. JB Hunt Transport
Performance |
| Timeline |
| Andrews Sykes Group |
| JB Hunt Transport |
Andrews Sykes and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andrews Sykes and JB Hunt
The main advantage of trading using opposite Andrews Sykes and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andrews Sykes 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.| Andrews Sykes vs. Cornish Metals | Andrews Sykes vs. Broadcom | Andrews Sykes vs. Trainline Plc | Andrews Sykes vs. GreenX Metals |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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