Correlation Between JB Hunt and Colgate Palmolive
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Colgate Palmolive 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 JB Hunt and Colgate Palmolive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JB Hunt Transport and Colgate Palmolive, you can compare the effects of market volatilities on JB Hunt and Colgate Palmolive 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 JB Hunt with a short position of Colgate Palmolive. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Colgate Palmolive.
Diversification Opportunities for JB Hunt and Colgate Palmolive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between J1BH34 and Colgate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Colgate Palmolive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colgate Palmolive and JB Hunt 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 JB Hunt Transport are associated (or correlated) with Colgate Palmolive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colgate Palmolive has no effect on the direction of JB Hunt i.e., JB Hunt and Colgate Palmolive go up and down completely randomly.
Pair Corralation between JB Hunt and Colgate Palmolive
If you would invest 2,382 in JB Hunt Transport on September 12, 2025 and sell it today you would earn a total of 526.00 from holding JB Hunt Transport or generate 22.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Colgate Palmolive
Performance |
| Timeline |
| JB Hunt Transport |
| Colgate Palmolive |
Risk-Adjusted Performance
Weakest
Weak | Strong |
JB Hunt and Colgate Palmolive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Colgate Palmolive
The main advantage of trading using opposite JB Hunt and Colgate Palmolive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Colgate Palmolive 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 Colgate Palmolive will offset losses from the drop in Colgate Palmolive's long position.| JB Hunt vs. Taiwan Semiconductor Manufacturing | JB Hunt vs. Apple Inc | JB Hunt vs. Alibaba Group Holding | JB Hunt vs. Microsoft |
| Colgate Palmolive vs. Mitsubishi UFJ Financial | Colgate Palmolive vs. Lloyds Banking Group | Colgate Palmolive vs. Nordon Indstrias Metalrgicas | Colgate Palmolive vs. MT Bank |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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