Correlation Between JB Hunt and MAHLE Metal
Can any of the company-specific risk be diversified away by investing in both JB Hunt and MAHLE Metal 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 MAHLE Metal 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 MAHLE Metal Leve, you can compare the effects of market volatilities on JB Hunt and MAHLE Metal 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 MAHLE Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and MAHLE Metal.
Diversification Opportunities for JB Hunt and MAHLE Metal
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between J1BH34 and MAHLE is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and MAHLE Metal Leve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAHLE Metal Leve 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 MAHLE Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAHLE Metal Leve has no effect on the direction of JB Hunt i.e., JB Hunt and MAHLE Metal go up and down completely randomly.
Pair Corralation between JB Hunt and MAHLE Metal
If you would invest 2,656 in MAHLE Metal Leve on October 17, 2024 and sell it today you would earn a total of 77.00 from holding MAHLE Metal Leve or generate 2.9% 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. MAHLE Metal Leve
Performance |
| Timeline |
| JB Hunt Transport |
| MAHLE Metal Leve |
JB Hunt and MAHLE Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and MAHLE Metal
The main advantage of trading using opposite JB Hunt and MAHLE Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, MAHLE Metal 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 MAHLE Metal will offset losses from the drop in MAHLE Metal's long position.| JB Hunt vs. Cognizant Technology Solutions | JB Hunt vs. Check Point Software | JB Hunt vs. Darden Restaurants, | JB Hunt vs. Brpr Corporate Offices |
| MAHLE Metal vs. Tupy SA | MAHLE Metal vs. Engie Brasil Energia | MAHLE Metal vs. Grendene SA | MAHLE Metal vs. M Dias Branco |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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