Correlation Between Rockfire Resources and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Rockfire Resources 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 Rockfire Resources and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rockfire Resources plc and JB Hunt Transport, you can compare the effects of market volatilities on Rockfire Resources 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 Rockfire Resources with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rockfire Resources and JB Hunt.
Diversification Opportunities for Rockfire Resources and JB Hunt
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rockfire and 0J71 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Rockfire Resources plc 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 Rockfire Resources 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 Rockfire Resources plc 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 Rockfire Resources i.e., Rockfire Resources and JB Hunt go up and down completely randomly.
Pair Corralation between Rockfire Resources 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 Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rockfire Resources plc vs. JB Hunt Transport
Performance |
| Timeline |
| Rockfire Resources plc |
| JB Hunt Transport |
Rockfire Resources and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rockfire Resources and JB Hunt
The main advantage of trading using opposite Rockfire Resources and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rockfire Resources 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.| Rockfire Resources vs. TechnipFMC PLC | Rockfire Resources vs. Made Tech Group | Rockfire Resources vs. Microchip Technology | Rockfire Resources vs. DXC Technology Co |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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