Correlation Between Landstar System and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Landstar System and JB Hunt 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 Landstar System and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Landstar System and JB Hunt Transport, you can compare the effects of market volatilities on Landstar System and JB Hunt 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 Landstar System with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Landstar System and JB Hunt.
Diversification Opportunities for Landstar System and JB Hunt
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Landstar and JBHT is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Landstar System and JB Hunt Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JB Hunt Transport and Landstar System 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 Landstar System are associated (or correlated) with JB Hunt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JB Hunt Transport has no effect on the direction of Landstar System i.e., Landstar System and JB Hunt go up and down completely randomly.
Pair Corralation between Landstar System and JB Hunt
Given the investment horizon of 90 days Landstar System is expected to under-perform the JB Hunt. But the stock apears to be less risky and, when comparing its historical volatility, Landstar System is 1.34 times less risky than JB Hunt. The stock trades about -0.04 of its potential returns per unit of risk. The JB Hunt Transport is currently generating about 0.01 of returns per unit of risk over similar time horizon. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Landstar System vs. JB Hunt Transport
Performance |
| Timeline |
| Landstar System |
| JB Hunt Transport |
Landstar System and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Landstar System and JB Hunt
The main advantage of trading using opposite Landstar System and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Landstar System position performs unexpectedly, JB Hunt 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 JB Hunt will offset losses from the drop in JB Hunt's long position.| Landstar System vs. Hub Group | Landstar System vs. JB Hunt Transport | Landstar System vs. Expeditors International of | Landstar System vs. CH Robinson Worldwide |
| JB Hunt vs. Forward Air | JB Hunt vs. Hub Group | JB Hunt vs. CH Robinson Worldwide | JB Hunt 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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