Correlation Between Lakeside Holding and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Lakeside Holding 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 Lakeside Holding and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeside Holding Limited and JB Hunt Transport, you can compare the effects of market volatilities on Lakeside Holding 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 Lakeside Holding with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeside Holding and JB Hunt.
Diversification Opportunities for Lakeside Holding and JB Hunt
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lakeside and JBHT is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lakeside Holding Limited 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 Lakeside Holding 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 Lakeside Holding Limited 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 Lakeside Holding i.e., Lakeside Holding and JB Hunt go up and down completely randomly.
Pair Corralation between Lakeside Holding and JB Hunt
Considering the 90-day investment horizon Lakeside Holding Limited is expected to under-perform the JB Hunt. In addition to that, Lakeside Holding is 2.2 times more volatile than JB Hunt Transport. It trades about -0.04 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.12 per unit of volatility. If you would invest 12,931 in JB Hunt Transport on April 25, 2025 and sell it today you would earn a total of 1,954 from holding JB Hunt Transport or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lakeside Holding Limited vs. JB Hunt Transport
Performance |
| Timeline |
| Lakeside Holding |
| JB Hunt Transport |
Lakeside Holding and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeside Holding and JB Hunt
The main advantage of trading using opposite Lakeside Holding and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeside Holding 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.| Lakeside Holding vs. Keurig Dr Pepper | Lakeside Holding vs. Fevertree Drinks Plc | Lakeside Holding vs. The Coca Cola | Lakeside Holding vs. Oatly Group AB |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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