Correlation Between Live Nation and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Live Nation and JB Hunt 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 Live Nation and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Nation Entertainment, and JB Hunt Transport, you can compare the effects of market volatilities on Live Nation and JB Hunt 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 Live Nation with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and JB Hunt.
Diversification Opportunities for Live Nation and JB Hunt
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Live and J1BH34 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment, and JB Hunt Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JB Hunt Transport and Live Nation 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 Live Nation Entertainment, are associated (or correlated) with JB Hunt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JB Hunt Transport has no effect on the direction of Live Nation i.e., Live Nation and JB Hunt go up and down completely randomly.
Pair Corralation between Live Nation and JB Hunt
If you would invest 16,416 in Live Nation Entertainment, on October 24, 2024 and sell it today you would earn a total of 354.00 from holding Live Nation Entertainment, or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment, vs. JB Hunt Transport
Performance |
| Timeline |
| Live Nation Entertai |
| JB Hunt Transport |
Live Nation and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and JB Hunt
The main advantage of trading using opposite Live Nation and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, JB Hunt 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 JB Hunt will offset losses from the drop in JB Hunt's long position.| Live Nation vs. Intelbras SA | Live Nation vs. Neogrid Participaes SA | Live Nation vs. Mliuz SA | Live Nation vs. Locaweb Servios de |
| JB Hunt vs. Taiwan Semiconductor Manufacturing | JB Hunt vs. Apple Inc | JB Hunt vs. Alibaba Group Holding | JB Hunt vs. Microsoft |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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