Correlation Between Freightos Limited and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Freightos Limited 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 Freightos Limited and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freightos Limited Warrants and JB Hunt Transport, you can compare the effects of market volatilities on Freightos Limited 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 Freightos Limited with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freightos Limited and JB Hunt.
Diversification Opportunities for Freightos Limited and JB Hunt
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Freightos and JBHT is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Freightos Limited Warrants 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 Freightos Limited 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 Freightos Limited Warrants 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 Freightos Limited i.e., Freightos Limited and JB Hunt go up and down completely randomly.
Pair Corralation between Freightos Limited and JB Hunt
Assuming the 90 days horizon Freightos Limited Warrants is expected to generate 3.09 times more return on investment than JB Hunt. However, Freightos Limited is 3.09 times more volatile than JB Hunt Transport. It trades about -0.04 of its potential returns per unit of risk. JB Hunt Transport is currently generating about -0.17 per unit of risk. If you would invest 20.00 in Freightos Limited Warrants on January 11, 2025 and sell it today you would lose (4.00) from holding Freightos Limited Warrants or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freightos Limited Warrants vs. JB Hunt Transport
Performance |
| Timeline |
| Freightos Limited |
| JB Hunt Transport |
Freightos Limited and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freightos Limited and JB Hunt
The main advantage of trading using opposite Freightos Limited and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freightos Limited 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.| Freightos Limited vs. Artisan Partners Asset | Freightos Limited vs. Coupang LLC | Freightos Limited vs. Barings BDC | Freightos Limited vs. Yoshitsu Co Ltd |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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