Correlation Between United Parcel and JB Hunt
Can any of the company-specific risk be diversified away by investing in both United Parcel 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 United Parcel and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Parcel Service and JB Hunt Transport, you can compare the effects of market volatilities on United Parcel 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 United Parcel with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Parcel and JB Hunt.
Diversification Opportunities for United Parcel and JB Hunt
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and JBHT is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding United Parcel Service 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 United Parcel 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 United Parcel Service 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 United Parcel i.e., United Parcel and JB Hunt go up and down completely randomly.
Pair Corralation between United Parcel and JB Hunt
Considering the 90-day investment horizon United Parcel is expected to generate 2.69 times less return on investment than JB Hunt. But when comparing it to its historical volatility, United Parcel Service is 1.37 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 0.13 of returns per unit of risk over similar time horizon. If you would invest 12,994 in JB Hunt Transport on April 23, 2025 and sell it today you would earn a total of 2,199 from holding JB Hunt Transport or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Parcel Service vs. JB Hunt Transport
Performance |
| Timeline |
| United Parcel Service |
| JB Hunt Transport |
United Parcel and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Parcel and JB Hunt
The main advantage of trading using opposite United Parcel and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Parcel 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.| United Parcel vs. JB Hunt Transport | United Parcel vs. CH Robinson Worldwide | United Parcel vs. Hub Group | United Parcel vs. Landstar System |
| 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |