Correlation Between JB Hunt and Elevance Health,

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

Diversification Opportunities for JB Hunt and Elevance Health,

-0.62

Correlation Coefficient

JB Hunt  Elevance Health,

Excellent diversification

The 3 months correlation between J1BH34 and Elevance is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Elevance Health, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevance Health, 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 Elevance Health,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevance Health, has no effect on the direction of JB Hunt i.e., JB Hunt and Elevance Health, go up and down completely randomly.

Pair Corralation between JB Hunt and Elevance Health,

Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 0.01 times more return on investment than Elevance Health,. However, JB Hunt Transport is 81.0 times less risky than Elevance Health,. It trades about 0.13 of its potential returns per unit of risk. Elevance Health, is currently generating about -0.12 per unit of risk. If you would invest  2,787  in JB Hunt Transport on October 6, 2024 and sell it today you would earn a total of  5.00  from holding JB Hunt Transport or generate 0.18% 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.  Elevance Health,

JB Hunt Transport

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, JB Hunt is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Elevance Health,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elevance Health, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with JB Hunt and Elevance Health,

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

The idea behind JB Hunt Transport and Elevance Health, 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.