Correlation Between JB Hunt and Beeks Trading

Can any of the company-specific risk be diversified away by investing in both JB Hunt and Beeks Trading 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 JB Hunt and Beeks Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JB Hunt Transport and Beeks Trading, you can compare the effects of market volatilities on JB Hunt and Beeks Trading 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 JB Hunt with a short position of Beeks Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Beeks Trading.

Diversification Opportunities for JB Hunt and Beeks Trading

-0.01

Correlation Coefficient

JB Hunt  Beeks Trading

Good diversification

The 3 months correlation between 0J71 and Beeks is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Beeks Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeks Trading and JB Hunt 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 JB Hunt Transport are associated (or correlated) with Beeks Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeks Trading has no effect on the direction of JB Hunt i.e., JB Hunt and Beeks Trading go up and down completely randomly.

Pair Corralation between JB Hunt and Beeks Trading

Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Beeks Trading. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 1.44 times less risky than Beeks Trading. The stock trades about -0.08 of its potential returns per unit of risk. The Beeks Trading is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  26,800  in Beeks Trading on October 6, 2024 and sell it today you would earn a total of  2,400  from holding Beeks Trading or generate 8.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.62%
Values	Daily Returns

JB Hunt Transport  vs.  Beeks Trading

JB Hunt Transport

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, JB Hunt is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Beeks Trading

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Beeks Trading are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Beeks Trading may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with JB Hunt and Beeks Trading

The main advantage of trading using opposite JB Hunt and Beeks Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Beeks Trading 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 Beeks Trading will offset losses from the drop in Beeks Trading's long position.

The idea behind JB Hunt Transport and Beeks Trading pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..