Correlation Between JB Hunt and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Agilent Technologies 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 JB Hunt and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JB Hunt Transport and Agilent Technologies, you can compare the effects of market volatilities on JB Hunt and Agilent Technologies 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 JB Hunt with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Agilent Technologies.
Diversification Opportunities for JB Hunt and Agilent Technologies
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between J1BH34 and Agilent is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and JB Hunt 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 JB Hunt Transport are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of JB Hunt i.e., JB Hunt and Agilent Technologies go up and down completely randomly.
Pair Corralation between JB Hunt and Agilent Technologies
If you would invest 41,756 in Agilent Technologies on November 4, 2024 and sell it today you would earn a total of 2,510 from holding Agilent Technologies or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Agilent Technologies
Performance |
| Timeline |
| JB Hunt Transport |
| Agilent Technologies |
JB Hunt and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Agilent Technologies
The main advantage of trading using opposite JB Hunt and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Agilent Technologies 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.| JB Hunt vs. Multilaser Industrial SA | JB Hunt vs. Zoom Video Communications | JB Hunt vs. STAG Industrial, | JB Hunt vs. SK Telecom Co, |
| Agilent Technologies vs. The Home Depot | Agilent Technologies vs. Verizon Communications | Agilent Technologies vs. Liberty Broadband | Agilent Technologies vs. Academy Sports and |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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