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
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between DSV and JBHT is 0.17. 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 generate 1.58 times more return on investment than JB Hunt. However, DSV Panalpina is 1.58 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 0.01 per unit of risk. If you would invest 14,264 in DSV Panalpina AS on August 24, 2024 and sell it today you would earn a total of 6,246 from holding DSV Panalpina AS or generate 43.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |