Correlation Between JB Hunt and United States
Can any of the company-specific risk be diversified away by investing in both JB Hunt and United States 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 United States 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 United States Steel, you can compare the effects of market volatilities on JB Hunt and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and United States.
Diversification Opportunities for JB Hunt and United States
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between J1BH34 and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of JB Hunt i.e., JB Hunt and United States go up and down completely randomly.
Pair Corralation between JB Hunt and United States
If you would invest 20,002 in United States Steel on October 17, 2024 and sell it today you would earn a total of 1,698 from holding United States Steel or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. United States Steel
Performance |
| Timeline |
| JB Hunt Transport |
| United States Steel |
JB Hunt and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and United States
The main advantage of trading using opposite JB Hunt and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' 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 |
| United States vs. Ares Management | United States vs. Waste Management | United States vs. Taiwan Semiconductor Manufacturing | United States vs. Global X Funds |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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