Correlation Between JB Hunt and STMicroelectronics
Can any of the company-specific risk be diversified away by investing in both JB Hunt and STMicroelectronics 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 STMicroelectronics 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 STMicroelectronics NV ADR, you can compare the effects of market volatilities on JB Hunt and STMicroelectronics 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 STMicroelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and STMicroelectronics.
Diversification Opportunities for JB Hunt and STMicroelectronics
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JBHT and STMicroelectronics is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and STMicroelectronics NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STMicroelectronics NV ADR 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 STMicroelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STMicroelectronics NV ADR has no effect on the direction of JB Hunt i.e., JB Hunt and STMicroelectronics go up and down completely randomly.
Pair Corralation between JB Hunt and STMicroelectronics
Given the investment horizon of 90 days JB Hunt is expected to generate 1.1 times less return on investment than STMicroelectronics. But when comparing it to its historical volatility, JB Hunt Transport is 1.31 times less risky than STMicroelectronics. It trades about 0.44 of its potential returns per unit of risk. STMicroelectronics NV ADR is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 2,257 in STMicroelectronics NV ADR on September 27, 2025 and sell it today you would earn a total of 355.00 from holding STMicroelectronics NV ADR or generate 15.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. STMicroelectronics NV ADR
Performance |
| Timeline |
| JB Hunt Transport |
| STMicroelectronics NV ADR |
JB Hunt and STMicroelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and STMicroelectronics
The main advantage of trading using opposite JB Hunt and STMicroelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, STMicroelectronics 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 STMicroelectronics will offset losses from the drop in STMicroelectronics' long position.| JB Hunt vs. XPO Logistics | JB Hunt vs. Expeditors International of | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. ZTO Express |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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