Correlation Between JB Hunt and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Advantage Solutions 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 Advantage Solutions 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 Advantage Solutions, you can compare the effects of market volatilities on JB Hunt and Advantage Solutions 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 Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Advantage Solutions.
Diversification Opportunities for JB Hunt and Advantage Solutions
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JBHT and Advantage is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions 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 Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of JB Hunt i.e., JB Hunt and Advantage Solutions go up and down completely randomly.
Pair Corralation between JB Hunt and Advantage Solutions
Given the investment horizon of 90 days JB Hunt is expected to generate 24.97 times less return on investment than Advantage Solutions. But when comparing it to its historical volatility, JB Hunt Transport is 24.41 times less risky than Advantage Solutions. It trades about 0.1 of its potential returns per unit of risk. Advantage Solutions is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1.02 in Advantage Solutions on August 30, 2025 and sell it today you would lose (0.54) from holding Advantage Solutions or give up 52.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.38% |
| Values | Daily Returns |
JB Hunt Transport vs. Advantage Solutions
Performance |
| Timeline |
| JB Hunt Transport |
| Advantage Solutions |
Risk-Adjusted Performance
Fair
Weak | Strong |
JB Hunt and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Advantage Solutions
The main advantage of trading using opposite JB Hunt and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| JB Hunt vs. Ryder System | JB Hunt vs. Werner Enterprises | JB Hunt vs. Knight Transportation | JB Hunt vs. Navios Maritime Partners |
| Advantage Solutions vs. Medical Connections Holdings | Advantage Solutions vs. Lombard Medical | Advantage Solutions vs. American Medical Technologies | Advantage Solutions vs. ProUroCare Medical |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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