Correlation Between GreenPower and JB Hunt
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GreenPower Motor vs. JB Hunt Transport
Performance |
Timeline |
GreenPower Motor |
JB Hunt Transport |
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.GreenPower vs. Blue Bird Corp | GreenPower vs. AYRO Inc | GreenPower vs. Hyliion Holdings Corp | GreenPower vs. Kandi Technologies Group |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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