Correlation Between JB Hunt and Lakeside Holding
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Lakeside 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 Lakeside 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 Lakeside Holding Limited, you can compare the effects of market volatilities on JB Hunt and Lakeside 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 Lakeside Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Lakeside Holding.
Diversification Opportunities for JB Hunt and Lakeside Holding
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JBHT and Lakeside is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Lakeside Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeside Holding 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 Lakeside Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeside Holding has no effect on the direction of JB Hunt i.e., JB Hunt and Lakeside Holding go up and down completely randomly.
Pair Corralation between JB Hunt and Lakeside Holding
Given the investment horizon of 90 days JB Hunt is expected to generate 4.59 times less return on investment than Lakeside Holding. But when comparing it to its historical volatility, JB Hunt Transport is 6.35 times less risky than Lakeside Holding. It trades about 0.13 of its potential returns per unit of risk. Lakeside Holding Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 223.00 in Lakeside Holding Limited on September 2, 2024 and sell it today you would earn a total of 22.00 from holding Lakeside Holding Limited or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Lakeside Holding Limited
Performance |
| Timeline |
| JB Hunt Transport |
| Lakeside Holding |
JB Hunt and Lakeside Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Lakeside Holding
The main advantage of trading using opposite JB Hunt and Lakeside Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Lakeside 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 Lakeside Holding will offset losses from the drop in Lakeside 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 |
| Lakeside Holding vs. Expeditors International of | Lakeside Holding vs. FedEx | Lakeside Holding vs. BingEx | Lakeside Holding vs. Globavend Holdings Limited |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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