Correlation Between JB Hunt and Biogen
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Biogen 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 Biogen 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 Biogen Inc, you can compare the effects of market volatilities on JB Hunt and Biogen 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 Biogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Biogen.
Diversification Opportunities for JB Hunt and Biogen
Pay attention - limited upside
The 3 months correlation between J1BH34 and Biogen is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen Inc 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 Biogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biogen Inc has no effect on the direction of JB Hunt i.e., JB Hunt and Biogen go up and down completely randomly.
Pair Corralation between JB Hunt and Biogen
If you would invest 2,792 in JB Hunt Transport on October 9, 2024 and sell it today you would earn a total of 0.00 from holding JB Hunt Transport or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Biogen Inc
Performance |
| Timeline |
| JB Hunt Transport |
| Biogen Inc |
JB Hunt and Biogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Biogen
The main advantage of trading using opposite JB Hunt and Biogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Biogen 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 Biogen will offset losses from the drop in Biogen's long position.| JB Hunt vs. Hormel Foods | JB Hunt vs. Marvell Technology | JB Hunt vs. New Oriental Education | JB Hunt vs. TechnipFMC plc |
| Biogen vs. salesforce inc | Biogen vs. Hormel Foods | Biogen vs. Marfrig Global Foods | Biogen vs. Verizon Communications |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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