Correlation Between Wheaton Precious and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Wheaton Precious 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 Wheaton Precious and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheaton Precious Metals and JB Hunt Transport, you can compare the effects of market volatilities on Wheaton Precious 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 Wheaton Precious with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheaton Precious and JB Hunt.
Diversification Opportunities for Wheaton Precious and JB Hunt
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wheaton and 0J71 is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals 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 Wheaton Precious 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 Wheaton Precious Metals 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 Wheaton Precious i.e., Wheaton Precious and JB Hunt go up and down completely randomly.
Pair Corralation between Wheaton Precious and JB Hunt
Assuming the 90 days trading horizon Wheaton Precious Metals is expected to generate 0.88 times more return on investment than JB Hunt. However, Wheaton Precious Metals is 1.13 times less risky than JB Hunt. It trades about 0.15 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.02 per unit of risk. If you would invest 452,000 in Wheaton Precious Metals on October 26, 2024 and sell it today you would earn a total of 21,000 from holding Wheaton Precious Metals or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Wheaton Precious Metals vs. JB Hunt Transport
Performance |
| Timeline |
| Wheaton Precious Metals |
| JB Hunt Transport |
Wheaton Precious and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheaton Precious and JB Hunt
The main advantage of trading using opposite Wheaton Precious and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheaton Precious 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.| Wheaton Precious vs. Givaudan SA | Wheaton Precious vs. Antofagasta PLC | Wheaton Precious vs. Ferrexpo PLC | Wheaton Precious vs. Atalaya Mining |
| JB Hunt vs. Creo Medical Group | JB Hunt vs. Wheaton Precious Metals | JB Hunt vs. European Metals Holdings | JB Hunt vs. Charter Communications Cl |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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