Correlation Between JB Hunt and PENN Entertainment,
Can any of the company-specific risk be diversified away by investing in both JB Hunt and PENN Entertainment, 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 PENN Entertainment, 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 PENN Entertainment,, you can compare the effects of market volatilities on JB Hunt and PENN Entertainment, 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 PENN Entertainment,. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and PENN Entertainment,.
Diversification Opportunities for JB Hunt and PENN Entertainment,
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between J1BH34 and PENN is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and PENN Entertainment, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment, 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 PENN Entertainment,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN Entertainment, has no effect on the direction of JB Hunt i.e., JB Hunt and PENN Entertainment, go up and down completely randomly.
Pair Corralation between JB Hunt and PENN Entertainment,
If you would invest 1,171 in PENN Entertainment, on November 5, 2024 and sell it today you would earn a total of 0.00 from holding PENN Entertainment, 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. PENN Entertainment,
Performance |
| Timeline |
| JB Hunt Transport |
| PENN Entertainment, |
JB Hunt and PENN Entertainment, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and PENN Entertainment,
The main advantage of trading using opposite JB Hunt and PENN Entertainment, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, PENN Entertainment, 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 PENN Entertainment, will offset losses from the drop in PENN Entertainment,'s long position.| JB Hunt vs. DXC Technology | JB Hunt vs. Extra Space Storage | JB Hunt vs. Autohome | JB Hunt vs. Guidewire Software, |
| PENN Entertainment, vs. Omega Healthcare Investors, | PENN Entertainment, vs. Check Point Software | PENN Entertainment, vs. Micron Technology | PENN Entertainment, vs. CVS Health |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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