Correlation Between Ryder System and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Ryder 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 Ryder 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 Ryder System and JB Hunt Transport, you can compare the effects of market volatilities on Ryder 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 Ryder System with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ryder System and JB Hunt.
Diversification Opportunities for Ryder System and JB Hunt
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ryder and JBHT is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ryder 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 Ryder 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 Ryder 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 Ryder System i.e., Ryder System and JB Hunt go up and down completely randomly.
Pair Corralation between Ryder System and JB Hunt
Taking into account the 90-day investment horizon Ryder System is expected to generate 0.99 times more return on investment than JB Hunt. However, Ryder System is 1.01 times less risky than JB Hunt. It trades about 0.07 of its potential returns per unit of risk. JB Hunt Transport is currently generating about -0.02 per unit of risk. If you would invest 9,744 in Ryder System on April 21, 2025 and sell it today you would earn a total of 7,246 from holding Ryder System or generate 74.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ryder System vs. JB Hunt Transport
Performance |
| Timeline |
| Ryder System |
| JB Hunt Transport |
Ryder System and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ryder System and JB Hunt
The main advantage of trading using opposite Ryder System and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryder 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.| Ryder System vs. Air Lease | Ryder System vs. GATX Corporation | Ryder System vs. Robert Half International | Ryder System vs. JB Hunt Transport |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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