Correlation Between JB Hunt and Expeditors International
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Expeditors International 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 Expeditors International 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 Expeditors International of, you can compare the effects of market volatilities on JB Hunt and Expeditors International 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 Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Expeditors International.
Diversification Opportunities for JB Hunt and Expeditors International
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JBHT and Expeditors is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International 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 Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of JB Hunt i.e., JB Hunt and Expeditors International go up and down completely randomly.
Pair Corralation between JB Hunt and Expeditors International
Given the investment horizon of 90 days JB Hunt Transport is expected to generate 1.28 times more return on investment than Expeditors International. However, JB Hunt is 1.28 times more volatile than Expeditors International of. It trades about 0.01 of its potential returns per unit of risk. Expeditors International of is currently generating about -0.01 per unit of risk. If you would invest 14,748 in JB Hunt Transport on March 31, 2025 and sell it today you would lose (214.00) from holding JB Hunt Transport or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Expeditors International of
Performance |
| Timeline |
| JB Hunt Transport |
| Expeditors International |
JB Hunt and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Expeditors International
The main advantage of trading using opposite JB Hunt and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Expeditors International 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 Expeditors International will offset losses from the drop in Expeditors International'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 |
| Expeditors International vs. Landstar System | Expeditors International vs. JB Hunt Transport | Expeditors International vs. Hub Group | Expeditors International 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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