Correlation Between JB Hunt and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Deutsche Post 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 Deutsche Post 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 Deutsche Post AG, you can compare the effects of market volatilities on JB Hunt and Deutsche Post 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 Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Deutsche Post.
Diversification Opportunities for JB Hunt and Deutsche Post
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JBHT and Deutsche is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG 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 Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of JB Hunt i.e., JB Hunt and Deutsche Post go up and down completely randomly.
Pair Corralation between JB Hunt and Deutsche Post
Given the investment horizon of 90 days JB Hunt Transport is expected to under-perform the Deutsche Post. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 1.45 times less risky than Deutsche Post. The stock trades about -0.01 of its potential returns per unit of risk. The Deutsche Post AG is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,990 in Deutsche Post AG on November 5, 2024 and sell it today you would lose (390.00) from holding Deutsche Post AG or give up 9.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.14% |
| Values | Daily Returns |
JB Hunt Transport vs. Deutsche Post AG
Performance |
| Timeline |
| JB Hunt Transport |
| Deutsche Post AG |
JB Hunt and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Deutsche Post
The main advantage of trading using opposite JB Hunt and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post'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 |
| Deutsche Post vs. Kuehne Nagel International | Deutsche Post vs. Kuehne Nagel International | Deutsche Post vs. DSV Panalpina AS | Deutsche Post vs. DSV Panalpina AS |
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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