Correlation Between JB Hunt and GXO Logistics
Can any of the company-specific risk be diversified away by investing in both JB Hunt and GXO Logistics 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 GXO Logistics 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 GXO Logistics, you can compare the effects of market volatilities on JB Hunt and GXO Logistics 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 GXO Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and GXO Logistics.
Diversification Opportunities for JB Hunt and GXO Logistics
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JBHT and GXO is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and GXO Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GXO Logistics 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 GXO Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GXO Logistics has no effect on the direction of JB Hunt i.e., JB Hunt and GXO Logistics go up and down completely randomly.
Pair Corralation between JB Hunt and GXO Logistics
Given the investment horizon of 90 days JB Hunt is expected to generate 20.13 times less return on investment than GXO Logistics. But when comparing it to its historical volatility, JB Hunt Transport is 1.13 times less risky than GXO Logistics. It trades about 0.01 of its potential returns per unit of risk. GXO Logistics is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,908 in GXO Logistics on March 30, 2025 and sell it today you would earn a total of 992.00 from holding GXO Logistics or generate 25.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. GXO Logistics
Performance |
| Timeline |
| JB Hunt Transport |
| GXO Logistics |
JB Hunt and GXO Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and GXO Logistics
The main advantage of trading using opposite JB Hunt and GXO Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, GXO Logistics 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 GXO Logistics will offset losses from the drop in GXO Logistics' long position.| JB Hunt vs. Forward Air | JB Hunt vs. Hub Group | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. Expeditors International of |
| GXO Logistics vs. Forward Air | GXO Logistics vs. Landstar System | GXO Logistics vs. JB Hunt Transport | GXO Logistics vs. Expeditors International of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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