Correlation Between FinecoBank SpA and JB Hunt

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

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

Diversification Opportunities for FinecoBank SpA and JB Hunt

-0.35

Correlation Coefficient

FinecoBank SpA  JB Hunt

Very good diversification

The 3 months correlation between FinecoBank and 0J71 is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding FinecoBank SpA 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 FinecoBank SpA 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 FinecoBank SpA 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 FinecoBank SpA i.e., FinecoBank SpA and JB Hunt go up and down completely randomly.

Pair Corralation between FinecoBank SpA and JB Hunt

Assuming the 90 days trading horizon FinecoBank SpA is expected to generate 0.66 times more return on investment than JB Hunt. However, FinecoBank SpA is 1.51 times less risky than JB Hunt. It trades about 0.24 of its potential returns per unit of risk. JB Hunt Transport is currently generating about -0.1 per unit of risk. If you would invest  1,670  in FinecoBank SpA on October 11, 2024 and sell it today you would earn a total of  75.00  from holding FinecoBank SpA or generate 4.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

FinecoBank SpA  vs.  JB Hunt Transport

FinecoBank SpA

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FinecoBank SpA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, FinecoBank SpA unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with FinecoBank SpA and JB Hunt

The main advantage of trading using opposite FinecoBank SpA and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinecoBank SpA 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.

The idea behind FinecoBank SpA and JB Hunt Transport 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.