Correlation Between CH Robinson and JB Hunt
Can any of the company-specific risk be diversified away by investing in both CH Robinson 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 CH Robinson and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CH Robinson Worldwide and JB Hunt Transport, you can compare the effects of market volatilities on CH Robinson 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 CH Robinson with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and JB Hunt.
Diversification Opportunities for CH Robinson and JB Hunt
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CHRW and JBHT is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide 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 CH Robinson 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 CH Robinson Worldwide 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 CH Robinson i.e., CH Robinson and JB Hunt go up and down completely randomly.
Pair Corralation between CH Robinson and JB Hunt
Given the investment horizon of 90 days CH Robinson is expected to generate 1.66 times less return on investment than JB Hunt. But when comparing it to its historical volatility, CH Robinson Worldwide is 1.5 times less risky than JB Hunt. It trades about 0.08 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 13,423 in JB Hunt Transport on April 4, 2025 and sell it today you would earn a total of 1,857 from holding JB Hunt Transport or generate 13.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CH Robinson Worldwide vs. JB Hunt Transport
Performance |
| Timeline |
| CH Robinson Worldwide |
| JB Hunt Transport |
CH Robinson and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Robinson and JB Hunt
The main advantage of trading using opposite CH Robinson and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson 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.| CH Robinson vs. Procter Gamble | CH Robinson vs. LATAM Airlines Group | CH Robinson vs. Hudson Technologies |
| JB Hunt vs. Cracker Barrel Old | JB Hunt vs. JBG SMITH Properties | JB Hunt vs. Boston Properties | JB Hunt vs. Jutal Offshore Oil |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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