Correlation Between JB Hunt and DXC Technology
Can any of the company-specific risk be diversified away by investing in both JB Hunt and DXC Technology 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 DXC Technology 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 DXC Technology, you can compare the effects of market volatilities on JB Hunt and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and DXC Technology.
Diversification Opportunities for JB Hunt and DXC Technology
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between J1BH34 and DXC is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and DXC Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of JB Hunt i.e., JB Hunt and DXC Technology go up and down completely randomly.
Pair Corralation between JB Hunt and DXC Technology
If you would invest 2,792 in JB Hunt Transport on October 26, 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. DXC Technology
Performance |
| Timeline |
| JB Hunt Transport |
| DXC Technology |
JB Hunt and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and DXC Technology
The main advantage of trading using opposite JB Hunt and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| JB Hunt vs. Take Two Interactive Software | JB Hunt vs. Fidelity National Information | JB Hunt vs. Clover Health Investments, | JB Hunt vs. DENTSPLY SIRONA |
| DXC Technology vs. Molson Coors Beverage | DXC Technology vs. Caesars Entertainment, | DXC Technology vs. Align Technology | DXC Technology vs. Fresenius Medical Care |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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