Correlation Between DSV Panalpina and JB Hunt
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina 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 DSV Panalpina and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSV Panalpina AS and JB Hunt Transport, you can compare the effects of market volatilities on DSV Panalpina 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 DSV Panalpina with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and JB Hunt.
Diversification Opportunities for DSV Panalpina and JB Hunt
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DSV and JBHT is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS 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 DSV Panalpina 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 DSV Panalpina AS 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 DSV Panalpina i.e., DSV Panalpina and JB Hunt go up and down completely randomly.
Pair Corralation between DSV Panalpina and JB Hunt
Assuming the 90 days horizon DSV Panalpina AS is expected to under-perform the JB Hunt. But the pink sheet apears to be less risky and, when comparing its historical volatility, DSV Panalpina AS is 1.39 times less risky than JB Hunt. The pink sheet trades about -0.2 of its potential returns per unit of risk. The JB Hunt Transport is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 17,582 in JB Hunt Transport on November 4, 2024 and sell it today you would lose (460.00) from holding JB Hunt Transport or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
DSV Panalpina AS vs. JB Hunt Transport
Performance |
| Timeline |
| DSV Panalpina AS |
| JB Hunt Transport |
DSV Panalpina and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and JB Hunt
The main advantage of trading using opposite DSV Panalpina and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina 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.| DSV Panalpina vs. Kuehne Nagel International | DSV Panalpina vs. CH Robinson Worldwide | DSV Panalpina vs. Kuehne Nagel International | DSV Panalpina vs. United Parcel Service |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |