Correlation Between JB Hunt and PDF Solutions
Can any of the company-specific risk be diversified away by investing in both JB Hunt and PDF 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 PDF 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 PDF Solutions, you can compare the effects of market volatilities on JB Hunt and PDF 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 PDF Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and PDF Solutions.
Diversification Opportunities for JB Hunt and PDF Solutions
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JBHT and PDF is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and PDF Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PDF 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 PDF Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PDF Solutions has no effect on the direction of JB Hunt i.e., JB Hunt and PDF Solutions go up and down completely randomly.
Pair Corralation between JB Hunt and PDF Solutions
Given the investment horizon of 90 days JB Hunt Transport is expected to generate 1.18 times more return on investment than PDF Solutions. However, JB Hunt is 1.18 times more volatile than PDF Solutions. It trades about 0.21 of its potential returns per unit of risk. PDF Solutions is currently generating about 0.08 per unit of risk. If you would invest 13,164 in JB Hunt Transport on September 23, 2025 and sell it today you would earn a total of 6,604 from holding JB Hunt Transport or generate 50.17% 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. PDF Solutions
Performance |
| Timeline |
| JB Hunt Transport |
| PDF Solutions |
JB Hunt and PDF Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and PDF Solutions
The main advantage of trading using opposite JB Hunt and PDF Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, PDF 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 PDF Solutions will offset losses from the drop in PDF Solutions' long position.| JB Hunt vs. XPO Logistics | JB Hunt vs. Expeditors International of | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. ZTO Express |
| PDF Solutions vs. Upbound Group | PDF Solutions vs. AMTD Digital | PDF Solutions vs. Yalla Group | PDF Solutions vs. Fastly, Class A |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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