Correlation Between Light Science and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Light Science 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 Light Science and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Light Science Technologies and JB Hunt Transport, you can compare the effects of market volatilities on Light Science 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 Light Science with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Light Science and JB Hunt.
Diversification Opportunities for Light Science and JB Hunt
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Light and 0J71 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Light Science Technologies 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 Light Science 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 Light Science Technologies 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 Light Science i.e., Light Science and JB Hunt go up and down completely randomly.
Pair Corralation between Light Science and JB Hunt
Assuming the 90 days trading horizon Light Science Technologies is expected to under-perform the JB Hunt. In addition to that, Light Science is 2.0 times more volatile than JB Hunt Transport. It trades about -0.07 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.01 per unit of volatility. If you would invest 17,196 in JB Hunt Transport on November 2, 2024 and sell it today you would earn a total of 187.00 from holding JB Hunt Transport or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.06% |
| Values | Daily Returns |
Light Science Technologies vs. JB Hunt Transport
Performance |
| Timeline |
| Light Science Techno |
| JB Hunt Transport |
Light Science and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Light Science and JB Hunt
The main advantage of trading using opposite Light Science and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Light Science 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.| Light Science vs. Teradata Corp | Light Science vs. Eastinco Mining Exploration | Light Science vs. McEwen Mining | Light Science vs. GoldMining |
| JB Hunt vs. Check Point Software | JB Hunt vs. Vitec Software Group | JB Hunt vs. Pfeiffer Vacuum Technology | JB Hunt vs. Accesso Technology Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |