Correlation Between Samsung Electronics and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics 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 Samsung Electronics and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and JB Hunt Transport, you can compare the effects of market volatilities on Samsung Electronics 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 Samsung Electronics with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and JB Hunt.
Diversification Opportunities for Samsung Electronics and JB Hunt
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and 0J71 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co 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 Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and JB Hunt go up and down completely randomly.
Pair Corralation between Samsung Electronics and JB Hunt
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the JB Hunt. In addition to that, Samsung Electronics is 1.58 times more volatile than JB Hunt Transport. It trades about -0.02 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.15 per unit of volatility. If you would invest 17,770 in JB Hunt Transport on August 28, 2024 and sell it today you would earn a total of 1,174 from holding JB Hunt Transport or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. JB Hunt Transport
Performance |
| Timeline |
| Samsung Electronics |
| JB Hunt Transport |
Samsung Electronics and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and JB Hunt
The main advantage of trading using opposite Samsung Electronics and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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.| Samsung Electronics vs. Futura Medical | Samsung Electronics vs. Evolution Gaming Group | Samsung Electronics vs. Games Workshop Group | Samsung Electronics vs. AMG Advanced Metallurgical |
| JB Hunt vs. Samsung Electronics Co | JB Hunt vs. Samsung Electronics Co | JB Hunt vs. Hyundai Motor | JB Hunt vs. Toyota Motor Corp |
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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