Correlation Between STMicroelectronics and JB Hunt
Can any of the company-specific risk be diversified away by investing in both STMicroelectronics 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 STMicroelectronics and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STMicroelectronics NV and JB Hunt Transport, you can compare the effects of market volatilities on STMicroelectronics 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 STMicroelectronics with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of STMicroelectronics and JB Hunt.
Diversification Opportunities for STMicroelectronics and JB Hunt
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STMicroelectronics and J1BH34 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding STMicroelectronics NV 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 STMicroelectronics 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 STMicroelectronics NV 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 STMicroelectronics i.e., STMicroelectronics and JB Hunt go up and down completely randomly.
Pair Corralation between STMicroelectronics and JB Hunt
If you would invest 2,792 in JB Hunt Transport on October 17, 2024 and sell it today you would earn a total of 0.00 from holding JB Hunt Transport or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STMicroelectronics NV vs. JB Hunt Transport
Performance |
| Timeline |
| STMicroelectronics |
| JB Hunt Transport |
STMicroelectronics and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STMicroelectronics and JB Hunt
The main advantage of trading using opposite STMicroelectronics and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STMicroelectronics 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.| STMicroelectronics vs. Zoom Video Communications | STMicroelectronics vs. Prudential Financial | STMicroelectronics vs. Take Two Interactive Software | STMicroelectronics vs. United Natural Foods, |
| JB Hunt vs. Cognizant Technology Solutions | JB Hunt vs. Check Point Software | JB Hunt vs. Darden Restaurants, | JB Hunt vs. Brpr Corporate Offices |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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