Correlation Between IShares Physical and JB Hunt
Can any of the company-specific risk be diversified away by investing in both IShares Physical 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 IShares Physical and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Physical Silver and JB Hunt Transport, you can compare the effects of market volatilities on IShares Physical 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 IShares Physical with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Physical and JB Hunt.
Diversification Opportunities for IShares Physical and JB Hunt
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and 0J71 is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding iShares Physical Silver 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 IShares Physical 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 iShares Physical Silver 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 IShares Physical i.e., IShares Physical and JB Hunt go up and down completely randomly.
Pair Corralation between IShares Physical and JB Hunt
Assuming the 90 days trading horizon iShares Physical Silver is expected to under-perform the JB Hunt. In addition to that, IShares Physical is 1.0 times more volatile than JB Hunt Transport. It trades about -0.01 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 17,290 in JB Hunt Transport on October 24, 2024 and sell it today you would earn a total of 39.00 from holding JB Hunt Transport or generate 0.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.81% |
Values | Daily Returns |
iShares Physical Silver vs. JB Hunt Transport
Performance |
Timeline |
iShares Physical Silver |
JB Hunt Transport |
IShares Physical and JB Hunt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Physical and JB Hunt
The main advantage of trading using opposite IShares Physical and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Physical 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.IShares Physical vs. Premier Foods PLC | IShares Physical vs. Charter Communications Cl | IShares Physical vs. Gamma Communications PLC | IShares Physical vs. Compal Electronics GDR |
JB Hunt vs. Blackrock World Mining | JB Hunt vs. Eastinco Mining Exploration | JB Hunt vs. Anglo Asian Mining | JB Hunt vs. iShares Physical Silver |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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