Correlation Between JB Hunt and CH Robinson
Can any of the company-specific risk be diversified away by investing in both JB Hunt and CH Robinson 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 CH Robinson 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 CH Robinson Worldwide, you can compare the effects of market volatilities on JB Hunt and CH Robinson 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 CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and CH Robinson.
Diversification Opportunities for JB Hunt and CH Robinson
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JBHT and CHRW is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide 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 CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of JB Hunt i.e., JB Hunt and CH Robinson go up and down completely randomly.
Pair Corralation between JB Hunt and CH Robinson
Given the investment horizon of 90 days JB Hunt Transport is expected to generate 1.27 times more return on investment than CH Robinson. However, JB Hunt is 1.27 times more volatile than CH Robinson Worldwide. It trades about 0.17 of its potential returns per unit of risk. CH Robinson Worldwide is currently generating about 0.15 per unit of risk. If you would invest 14,269 in JB Hunt Transport on April 23, 2025 and sell it today you would earn a total of 924.00 from holding JB Hunt Transport or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. CH Robinson Worldwide
Performance |
| Timeline |
| JB Hunt Transport |
| CH Robinson Worldwide |
JB Hunt and CH Robinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and CH Robinson
The main advantage of trading using opposite JB Hunt and CH Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, CH Robinson 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 CH Robinson will offset losses from the drop in CH Robinson's long position.| JB Hunt vs. Forward Air | JB Hunt vs. Hub Group | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. Expeditors International of |
| CH Robinson vs. JB Hunt Transport | CH Robinson vs. Landstar System | CH Robinson vs. Hub Group | CH Robinson vs. Forward Air |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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