Correlation Between JB Hunt and LATAM Airlines
Can any of the company-specific risk be diversified away by investing in both JB Hunt and LATAM Airlines 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 LATAM Airlines 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 LATAM Airlines Group, you can compare the effects of market volatilities on JB Hunt and LATAM Airlines 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 LATAM Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and LATAM Airlines.
Diversification Opportunities for JB Hunt and LATAM Airlines
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between JBHT and LATAM is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and LATAM Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LATAM Airlines Group 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 LATAM Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LATAM Airlines Group has no effect on the direction of JB Hunt i.e., JB Hunt and LATAM Airlines go up and down completely randomly.
Pair Corralation between JB Hunt and LATAM Airlines
Given the investment horizon of 90 days JB Hunt Transport is expected to generate 1.73 times more return on investment than LATAM Airlines. However, JB Hunt is 1.73 times more volatile than LATAM Airlines Group. It trades about 0.07 of its potential returns per unit of risk. LATAM Airlines Group is currently generating about 0.07 per unit of risk. If you would invest 14,792 in JB Hunt Transport on July 27, 2025 and sell it today you would earn a total of 1,719 from holding JB Hunt Transport or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. LATAM Airlines Group
Performance |
| Timeline |
| JB Hunt Transport |
| LATAM Airlines Group |
JB Hunt and LATAM Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and LATAM Airlines
The main advantage of trading using opposite JB Hunt and LATAM Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, LATAM Airlines 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 LATAM Airlines will offset losses from the drop in LATAM Airlines' long position.| JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. ZTO Express | JB Hunt vs. XPO Logistics | JB Hunt vs. Expeditors International of |
| LATAM Airlines vs. Ryanair Holdings PLC | LATAM Airlines vs. Grupo Aeroportuario del | LATAM Airlines vs. JB Hunt Transport | LATAM Airlines vs. Grupo Aeroportuario del |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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