Correlation Between GreenPower and JB Hunt

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Can any of the company-specific risk be diversified away by investing in both GreenPower 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 GreenPower and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenPower Motor and JB Hunt Transport, you can compare the effects of market volatilities on GreenPower 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 GreenPower with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenPower and JB Hunt.

Diversification Opportunities for GreenPower and JB Hunt

-0.31
  Correlation Coefficient

Very good diversification

The 3 months correlation between GreenPower and JBHT is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GreenPower Motor 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 GreenPower 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 GreenPower Motor 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 GreenPower i.e., GreenPower and JB Hunt go up and down completely randomly.

Pair Corralation between GreenPower and JB Hunt

Allowing for the 90-day total investment horizon GreenPower Motor is expected to under-perform the JB Hunt. In addition to that, GreenPower is 1.66 times more volatile than JB Hunt Transport. It trades about -0.13 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.07 per unit of volatility. If you would invest  13,318  in JB Hunt Transport on May 3, 2025 and sell it today you would earn a total of  1,087  from holding JB Hunt Transport or generate 8.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

GreenPower Motor  vs.  JB Hunt Transport

 Performance 
       Timeline  
GreenPower Motor 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days GreenPower Motor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JB Hunt Transport 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical indicators, JB Hunt may actually be approaching a critical reversion point that can send shares even higher in September 2025.

GreenPower and JB Hunt Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GreenPower and JB Hunt

The main advantage of trading using opposite GreenPower and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenPower 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 GreenPower Motor 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.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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