Correlation Between United States and JB Hunt
Can any of the company-specific risk be diversified away by investing in both United States 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 United States and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and JB Hunt Transport, you can compare the effects of market volatilities on United States 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 United States with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and JB Hunt.
Diversification Opportunities for United States and JB Hunt
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and J1BH34 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel 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 United States 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 United States Steel 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 United States i.e., United States and JB Hunt go up and down completely randomly.
Pair Corralation between United States and JB Hunt
If you would invest 20,002 in United States Steel on October 17, 2024 and sell it today you would earn a total of 1,698 from holding United States Steel or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United States Steel vs. JB Hunt Transport
Performance |
| Timeline |
| United States Steel |
| JB Hunt Transport |
United States and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and JB Hunt
The main advantage of trading using opposite United States and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.| United States vs. Ares Management | United States vs. Waste Management | United States vs. Taiwan Semiconductor Manufacturing | United States vs. Global X Funds |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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