Correlation Between JB Hunt and ZTO Express
Can any of the company-specific risk be diversified away by investing in both JB Hunt and ZTO Express 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 ZTO Express 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 ZTO Express, you can compare the effects of market volatilities on JB Hunt and ZTO Express 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 ZTO Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and ZTO Express.
Diversification Opportunities for JB Hunt and ZTO Express
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JBHT and ZTO is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and ZTO Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO Express 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 ZTO Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTO Express has no effect on the direction of JB Hunt i.e., JB Hunt and ZTO Express go up and down completely randomly.
Pair Corralation between JB Hunt and ZTO Express
Given the investment horizon of 90 days JB Hunt Transport is expected to generate 1.05 times more return on investment than ZTO Express. However, JB Hunt is 1.05 times more volatile than ZTO Express. It trades about 0.15 of its potential returns per unit of risk. ZTO Express is currently generating about -0.67 per unit of risk. If you would invest 17,847 in JB Hunt Transport on August 28, 2024 and sell it today you would earn a total of 988.00 from holding JB Hunt Transport or generate 5.54% 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. ZTO Express
Performance |
| Timeline |
| JB Hunt Transport |
| ZTO Express |
JB Hunt and ZTO Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and ZTO Express
The main advantage of trading using opposite JB Hunt and ZTO Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, ZTO Express 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 ZTO Express will offset losses from the drop in ZTO Express' long position.| JB Hunt vs. Forward Air | JB Hunt vs. Hub Group | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. Expeditors International of |
| ZTO Express vs. Forward Air | ZTO Express vs. Landstar System | ZTO Express vs. JB Hunt Transport | ZTO Express vs. Expeditors International of |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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