Correlation Between JB Hunt and Globavend Holdings
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Globavend Holdings 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 Globavend Holdings 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 Globavend Holdings Limited, you can compare the effects of market volatilities on JB Hunt and Globavend Holdings 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 Globavend Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Globavend Holdings.
Diversification Opportunities for JB Hunt and Globavend Holdings
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JBHT and Globavend is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Globavend Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globavend Holdings 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 Globavend Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globavend Holdings has no effect on the direction of JB Hunt i.e., JB Hunt and Globavend Holdings go up and down completely randomly.
Pair Corralation between JB Hunt and Globavend Holdings
Given the investment horizon of 90 days JB Hunt Transport is expected to generate 0.21 times more return on investment than Globavend Holdings. However, JB Hunt Transport is 4.81 times less risky than Globavend Holdings. It trades about 0.01 of its potential returns per unit of risk. Globavend Holdings Limited is currently generating about -0.02 per unit of risk. If you would invest 17,323 in JB Hunt Transport on September 12, 2024 and sell it today you would earn a total of 905.00 from holding JB Hunt Transport or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.56% |
| Values | Daily Returns |
JB Hunt Transport vs. Globavend Holdings Limited
Performance |
| Timeline |
| JB Hunt Transport |
| Globavend Holdings |
JB Hunt and Globavend Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Globavend Holdings
The main advantage of trading using opposite JB Hunt and Globavend Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Globavend Holdings 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 Globavend Holdings will offset losses from the drop in Globavend Holdings' long position.| JB Hunt vs. Forward Air | JB Hunt vs. Hub Group | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. Expeditors International of |
| Globavend Holdings vs. GXO Logistics | Globavend Holdings vs. JB Hunt Transport | Globavend Holdings vs. Expeditors International of | Globavend Holdings vs. CH Robinson Worldwide |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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