Correlation Between Addentax Group and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Addentax Group 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 Addentax Group and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addentax Group Corp and JB Hunt Transport, you can compare the effects of market volatilities on Addentax Group 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 Addentax Group with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addentax Group and JB Hunt.
Diversification Opportunities for Addentax Group and JB Hunt
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Addentax and JBHT is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Addentax Group Corp 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 Addentax Group 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 Addentax Group Corp 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 Addentax Group i.e., Addentax Group and JB Hunt go up and down completely randomly.
Pair Corralation between Addentax Group and JB Hunt
Given the investment horizon of 90 days Addentax Group Corp is expected to under-perform the JB Hunt. In addition to that, Addentax Group is 3.67 times more volatile than JB Hunt Transport. It trades about -0.08 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.01 per unit of volatility. If you would invest 17,446 in JB Hunt Transport on August 27, 2024 and sell it today you would earn a total of 794.00 from holding JB Hunt Transport or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addentax Group Corp vs. JB Hunt Transport
Performance |
| Timeline |
| Addentax Group Corp |
| JB Hunt Transport |
Addentax Group and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addentax Group and JB Hunt
The main advantage of trading using opposite Addentax Group and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addentax Group 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.| Addentax Group vs. Jayud Global Logistics | Addentax Group vs. Freightos Limited Ordinary | Addentax Group vs. Radiant Logistics | Addentax Group vs. JB Hunt Transport |
| JB Hunt vs. Forward Air | JB Hunt vs. Hub Group | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. Expeditors International of |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |