Correlation Between Orient Telecoms and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Orient Telecoms 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 Orient Telecoms and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orient Telecoms and JB Hunt Transport, you can compare the effects of market volatilities on Orient Telecoms 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 Orient Telecoms with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orient Telecoms and JB Hunt.
Diversification Opportunities for Orient Telecoms and JB Hunt
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Orient and 0J71 is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Orient Telecoms 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 Orient Telecoms 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 Orient Telecoms 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 Orient Telecoms i.e., Orient Telecoms and JB Hunt go up and down completely randomly.
Pair Corralation between Orient Telecoms and JB Hunt
If you would invest 18,172 in JB Hunt Transport on September 5, 2024 and sell it today you would earn a total of 438.00 from holding JB Hunt Transport or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Orient Telecoms vs. JB Hunt Transport
Performance |
| Timeline |
| Orient Telecoms |
| JB Hunt Transport |
Orient Telecoms and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orient Telecoms and JB Hunt
The main advantage of trading using opposite Orient Telecoms and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orient Telecoms 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.| Orient Telecoms vs. Games Workshop Group | Orient Telecoms vs. AJ Bell plc | Orient Telecoms vs. Auto Trader Group | Orient Telecoms vs. 4Imprint Group Plc |
| JB Hunt vs. Playtech Plc | JB Hunt vs. Orient Telecoms | JB Hunt vs. Gamma Communications PLC | JB Hunt vs. McEwen Mining |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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