Correlation Between Bloom Energy and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Bloom Energy 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 Bloom Energy and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloom Energy Corp and JB Hunt Transport, you can compare the effects of market volatilities on Bloom Energy 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 Bloom Energy with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and JB Hunt.
Diversification Opportunities for Bloom Energy and JB Hunt
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloom and JBHT is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp 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 Bloom Energy 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 Bloom Energy Corp 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 Bloom Energy i.e., Bloom Energy and JB Hunt go up and down completely randomly.
Pair Corralation between Bloom Energy and JB Hunt
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 2.61 times more return on investment than JB Hunt. However, Bloom Energy is 2.61 times more volatile than JB Hunt Transport. It trades about 0.19 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.12 per unit of risk. If you would invest 1,924 in Bloom Energy Corp on April 26, 2025 and sell it today you would earn a total of 1,382 from holding Bloom Energy Corp or generate 71.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloom Energy Corp vs. JB Hunt Transport
Performance |
| Timeline |
| Bloom Energy Corp |
| JB Hunt Transport |
Bloom Energy and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and JB Hunt
The main advantage of trading using opposite Bloom Energy and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy 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.| Bloom Energy vs. FuelCell Energy | Bloom Energy vs. Plug Power | Bloom Energy vs. Solid Power | Bloom Energy vs. Microvast Holdings |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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