Correlation Between JB Hunt and 4Imprint Group

Can any of the company-specific risk be diversified away by investing in both JB Hunt and 4Imprint Group 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 4Imprint Group 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 4Imprint Group Plc, you can compare the effects of market volatilities on JB Hunt and 4Imprint Group 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 4Imprint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and 4Imprint Group.

Diversification Opportunities for JB Hunt and 4Imprint Group

0.46

Correlation Coefficient

JB Hunt  4Imprint Group

Very weak diversification

The 3 months correlation between 0J71 and 4Imprint is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and 4Imprint Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Imprint Group 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 4Imprint Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Imprint Group Plc has no effect on the direction of JB Hunt i.e., JB Hunt and 4Imprint Group go up and down completely randomly.

Pair Corralation between JB Hunt and 4Imprint Group

Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the 4Imprint Group. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 1.47 times less risky than 4Imprint Group. The stock trades about -0.12 of its potential returns per unit of risk. The 4Imprint Group Plc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  506,000  in 4Imprint Group Plc on October 25, 2024 and sell it today you would earn a total of  53,000  from holding 4Imprint Group Plc or generate 10.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	97.56%
Values	Daily Returns

JB Hunt Transport  vs.  4Imprint Group Plc

JB Hunt Transport

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JB Hunt Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, JB Hunt is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

4Imprint Group Plc

Risk-Adjusted Performance

4 of 100

Insignificant

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

Pair Trading with JB Hunt and 4Imprint Group

The main advantage of trading using opposite JB Hunt and 4Imprint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, 4Imprint Group 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 4Imprint Group will offset losses from the drop in 4Imprint Group's long position.

The idea behind JB Hunt Transport and 4Imprint Group Plc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.