Correlation Between Globavend Holdings and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Globavend Holdings 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 Globavend Holdings and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globavend Holdings Limited and JB Hunt Transport, you can compare the effects of market volatilities on Globavend Holdings 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 Globavend Holdings with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globavend Holdings and JB Hunt.
Diversification Opportunities for Globavend Holdings and JB Hunt
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globavend and JBHT is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Globavend Holdings Limited 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 Globavend Holdings 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 Globavend Holdings Limited 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 Globavend Holdings i.e., Globavend Holdings and JB Hunt go up and down completely randomly.
Pair Corralation between Globavend Holdings and JB Hunt
Considering the 90-day investment horizon Globavend Holdings Limited is expected to under-perform the JB Hunt. In addition to that, Globavend Holdings is 4.84 times more volatile than JB Hunt Transport. It trades about -0.02 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 18,386 in JB Hunt Transport on September 4, 2024 and sell it today you would earn a total of 538.00 from holding JB Hunt Transport or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.34% |
| Values | Daily Returns |
Globavend Holdings Limited vs. JB Hunt Transport
Performance |
| Timeline |
| Globavend Holdings |
| JB Hunt Transport |
Globavend Holdings and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globavend Holdings and JB Hunt
The main advantage of trading using opposite Globavend Holdings and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globavend Holdings 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.| Globavend Holdings vs. ASE Industrial Holding | Globavend Holdings vs. Alvotech | Globavend Holdings vs. Elmos Semiconductor SE | Globavend Holdings vs. MACOM Technology Solutions |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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