Correlation Between JB Hunt and Sumitomo Mitsui
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Sumitomo Mitsui 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 Sumitomo Mitsui 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 Sumitomo Mitsui Financial, you can compare the effects of market volatilities on JB Hunt and Sumitomo Mitsui 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 Sumitomo Mitsui. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Sumitomo Mitsui.
Diversification Opportunities for JB Hunt and Sumitomo Mitsui
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between J1BH34 and Sumitomo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Sumitomo Mitsui Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Mitsui Financial 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 Sumitomo Mitsui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Mitsui Financial has no effect on the direction of JB Hunt i.e., JB Hunt and Sumitomo Mitsui go up and down completely randomly.
Pair Corralation between JB Hunt and Sumitomo Mitsui
If you would invest 2,792 in JB Hunt Transport on October 25, 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Sumitomo Mitsui Financial
Performance |
| Timeline |
| JB Hunt Transport |
| Sumitomo Mitsui Financial |
JB Hunt and Sumitomo Mitsui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Sumitomo Mitsui
The main advantage of trading using opposite JB Hunt and Sumitomo Mitsui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Sumitomo Mitsui 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 Sumitomo Mitsui will offset losses from the drop in Sumitomo Mitsui's long position.| JB Hunt vs. Annaly Capital Management, | JB Hunt vs. Guidewire Software, | JB Hunt vs. Automatic Data Processing | JB Hunt vs. Zoom Video Communications |
| Sumitomo Mitsui vs. Credit Acceptance | Sumitomo Mitsui vs. HDFC Bank Limited | Sumitomo Mitsui vs. Hormel Foods | Sumitomo Mitsui vs. The Hartford Financial |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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