Correlation Between JB Hunt and CVS Health
Can any of the company-specific risk be diversified away by investing in both JB Hunt and CVS Health 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 CVS Health 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 CVS Health, you can compare the effects of market volatilities on JB Hunt and CVS Health 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 CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and CVS Health.
Diversification Opportunities for JB Hunt and CVS Health
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between J1BH34 and CVS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and CVS Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health 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 CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of JB Hunt i.e., JB Hunt and CVS Health go up and down completely randomly.
Pair Corralation between JB Hunt and CVS Health
If you would invest 2,792 in JB Hunt Transport on October 12, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. CVS Health
Performance |
| Timeline |
| JB Hunt Transport |
| CVS Health |
JB Hunt and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and CVS Health
The main advantage of trading using opposite JB Hunt and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, CVS Health 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 CVS Health will offset losses from the drop in CVS Health's long position.| JB Hunt vs. CVS Health | JB Hunt vs. Universal Health Services, | JB Hunt vs. Omega Healthcare Investors, | JB Hunt vs. Martin Marietta Materials, |
| CVS Health vs. Palantir Technologies | CVS Health vs. Zebra Technologies | CVS Health vs. Trane Technologies plc | CVS Health vs. Tyler Technologies, |
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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