Correlation Between JB Hunt and Micron Technology
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Micron 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 Micron 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 Micron Technology, you can compare the effects of market volatilities on JB Hunt and Micron 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 Micron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Micron Technology.
Diversification Opportunities for JB Hunt and Micron Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between J1BH34 and Micron is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Micron Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micron 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 Micron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micron Technology has no effect on the direction of JB Hunt i.e., JB Hunt and Micron Technology go up and down completely randomly.
Pair Corralation between JB Hunt and Micron Technology
If you would invest 10,197 in Micron Technology on October 12, 2024 and sell it today you would lose (43.00) from holding Micron Technology or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Micron Technology
Performance |
| Timeline |
| JB Hunt Transport |
| Micron Technology |
JB Hunt and Micron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Micron Technology
The main advantage of trading using opposite JB Hunt and Micron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Micron 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 Micron Technology will offset losses from the drop in Micron Technology'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, |
| Micron Technology vs. Costco Wholesale | Micron Technology vs. Datadog, | Micron Technology vs. United Airlines Holdings | Micron Technology vs. Deutsche Bank Aktiengesellschaft |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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