Correlation Between Vulcan Materials and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Vulcan Materials 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 Vulcan Materials and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vulcan Materials and JB Hunt Transport, you can compare the effects of market volatilities on Vulcan Materials 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 Vulcan Materials with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vulcan Materials and JB Hunt.
Diversification Opportunities for Vulcan Materials and JB Hunt
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vulcan and J1BH34 is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Materials 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 Vulcan Materials 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 Vulcan Materials 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 Vulcan Materials i.e., Vulcan Materials and JB Hunt go up and down completely randomly.
Pair Corralation between Vulcan Materials and JB Hunt
If you would invest 2,792 in JB Hunt Transport on October 12, 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vulcan Materials vs. JB Hunt Transport
Performance |
| Timeline |
| Vulcan Materials |
| JB Hunt Transport |
Vulcan Materials and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vulcan Materials and JB Hunt
The main advantage of trading using opposite Vulcan Materials and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vulcan Materials 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.| Vulcan Materials vs. Eucatex SA Indstria | Vulcan Materials vs. Eternit SA | Vulcan Materials vs. Fras le SA | Vulcan Materials vs. Indstrias Romi SA |
| JB Hunt vs. CVS Health | JB Hunt vs. Universal Health Services, | JB Hunt vs. Omega Healthcare Investors, | JB Hunt vs. Martin Marietta Materials, |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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