Correlation Between JB Hunt and Armlogi Holding
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Armlogi Holding 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 Armlogi Holding 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 Armlogi Holding Corp, you can compare the effects of market volatilities on JB Hunt and Armlogi Holding 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 Armlogi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Armlogi Holding.
Diversification Opportunities for JB Hunt and Armlogi Holding
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JBHT and Armlogi is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Armlogi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armlogi Holding Corp 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 Armlogi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armlogi Holding Corp has no effect on the direction of JB Hunt i.e., JB Hunt and Armlogi Holding go up and down completely randomly.
Pair Corralation between JB Hunt and Armlogi Holding
Given the investment horizon of 90 days JB Hunt is expected to generate 10.74 times less return on investment than Armlogi Holding. But when comparing it to its historical volatility, JB Hunt Transport is 4.17 times less risky than Armlogi Holding. It trades about 0.02 of its potential returns per unit of risk. Armlogi Holding Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 462.00 in Armlogi Holding Corp on August 27, 2024 and sell it today you would earn a total of 132.00 from holding Armlogi Holding Corp or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 36.46% |
| Values | Daily Returns |
JB Hunt Transport vs. Armlogi Holding Corp
Performance |
| Timeline |
| JB Hunt Transport |
| Armlogi Holding Corp |
JB Hunt and Armlogi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Armlogi Holding
The main advantage of trading using opposite JB Hunt and Armlogi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Armlogi Holding 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 Armlogi Holding will offset losses from the drop in Armlogi Holding's long position.| JB Hunt vs. Forward Air | JB Hunt vs. Hub Group | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. Expeditors International of |
| Armlogi Holding vs. Western Sierra Mining | Armlogi Holding vs. Independence Realty Trust | Armlogi Holding vs. Nomura Holdings ADR | Armlogi Holding vs. Inflection Point Acquisition |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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