Correlation Between JB Hunt and Fulcrum Metals
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Fulcrum Metals 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 Fulcrum Metals 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 Fulcrum Metals PLC, you can compare the effects of market volatilities on JB Hunt and Fulcrum Metals 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 Fulcrum Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Fulcrum Metals.
Diversification Opportunities for JB Hunt and Fulcrum Metals
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0J71 and Fulcrum is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Fulcrum Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulcrum Metals PLC 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 Fulcrum Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulcrum Metals PLC has no effect on the direction of JB Hunt i.e., JB Hunt and Fulcrum Metals go up and down completely randomly.
Pair Corralation between JB Hunt and Fulcrum Metals
Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Fulcrum Metals. In addition to that, JB Hunt is 1.82 times more volatile than Fulcrum Metals PLC. It trades about -0.36 of its total potential returns per unit of risk. Fulcrum Metals PLC is currently generating about 0.21 per unit of volatility. If you would invest 750.00 in Fulcrum Metals PLC on September 26, 2024 and sell it today you would earn a total of 25.00 from holding Fulcrum Metals PLC or generate 3.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
JB Hunt Transport vs. Fulcrum Metals PLC
Performance |
Timeline |
JB Hunt Transport |
Fulcrum Metals PLC |
JB Hunt and Fulcrum Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JB Hunt and Fulcrum Metals
The main advantage of trading using opposite JB Hunt and Fulcrum Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Fulcrum Metals 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 Fulcrum Metals will offset losses from the drop in Fulcrum Metals' long position.JB Hunt vs. Uniper SE | JB Hunt vs. Mulberry Group PLC | JB Hunt vs. London Security Plc | JB Hunt vs. Triad Group PLC |
Fulcrum Metals vs. Givaudan SA | Fulcrum Metals vs. Antofagasta PLC | Fulcrum Metals vs. Ferrexpo PLC | Fulcrum Metals vs. Atalaya Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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