Correlation Between JB Hunt and Applied Materials,
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Applied Materials, 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 Applied Materials, 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 Applied Materials,, you can compare the effects of market volatilities on JB Hunt and Applied Materials, 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 Applied Materials,. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Applied Materials,.
Diversification Opportunities for JB Hunt and Applied Materials,
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between J1BH34 and Applied is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Applied Materials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials, 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 Applied Materials,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials, has no effect on the direction of JB Hunt i.e., JB Hunt and Applied Materials, go up and down completely randomly.
Pair Corralation between JB Hunt and Applied Materials,
Assuming the 90 days trading horizon JB Hunt is expected to generate 12.26 times less return on investment than Applied Materials,. But when comparing it to its historical volatility, JB Hunt Transport is 2.41 times less risky than Applied Materials,. It trades about 0.01 of its potential returns per unit of risk. Applied Materials, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,082 in Applied Materials, on October 25, 2024 and sell it today you would earn a total of 5,510 from holding Applied Materials, or generate 90.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Applied Materials,
Performance |
| Timeline |
| JB Hunt Transport |
| Applied Materials, |
JB Hunt and Applied Materials, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Applied Materials,
The main advantage of trading using opposite JB Hunt and Applied Materials, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Applied Materials, 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 Applied Materials, will offset losses from the drop in Applied Materials,'s long position.| JB Hunt vs. Annaly Capital Management, | JB Hunt vs. Guidewire Software, | JB Hunt vs. Automatic Data Processing | JB Hunt vs. Zoom Video Communications |
| Applied Materials, vs. Clover Health Investments, | Applied Materials, vs. Unity Software | Applied Materials, vs. Seagate Technology Holdings | Applied Materials, vs. Align Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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