Correlation Between PS International and JB Hunt
Can any of the company-specific risk be diversified away by investing in both PS International 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 PS International and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PS International Group and JB Hunt Transport, you can compare the effects of market volatilities on PS International 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 PS International with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of PS International and JB Hunt.
Diversification Opportunities for PS International and JB Hunt
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PSIG and JBHT is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding PS International Group 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 PS International 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 PS International Group 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 PS International i.e., PS International and JB Hunt go up and down completely randomly.
Pair Corralation between PS International and JB Hunt
Given the investment horizon of 90 days PS International Group is expected to generate 5.51 times more return on investment than JB Hunt. However, PS International is 5.51 times more volatile than JB Hunt Transport. It trades about 0.01 of its potential returns per unit of risk. JB Hunt Transport is currently generating about -0.14 per unit of risk. If you would invest 58.00 in PS International Group on December 1, 2024 and sell it today you would lose (11.00) from holding PS International Group or give up 18.97% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PS International Group vs. JB Hunt Transport
Performance |
Timeline |
PS International |
JB Hunt Transport |
PS International and JB Hunt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PS International and JB Hunt
The main advantage of trading using opposite PS International and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PS International 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.PS International vs. Tradeweb Markets | PS International vs. Small Cap Premium | PS International vs. Futuretech II Acquisition | PS International vs. Inflection Point Acquisition |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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