Correlation Between JB Hunt and Taylor Maritime

Can any of the company-specific risk be diversified away by investing in both JB Hunt and Taylor Maritime 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 Taylor Maritime 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 Taylor Maritime Investments, you can compare the effects of market volatilities on JB Hunt and Taylor Maritime 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 Taylor Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Taylor Maritime.

Diversification Opportunities for JB Hunt and Taylor Maritime

0.82

Correlation Coefficient

JB Hunt  Taylor Maritime

Very poor diversification

The 3 months correlation between 0J71 and Taylor is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Taylor Maritime Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Maritime Inve 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 Taylor Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Maritime Inve has no effect on the direction of JB Hunt i.e., JB Hunt and Taylor Maritime go up and down completely randomly.

Pair Corralation between JB Hunt and Taylor Maritime

Assuming the 90 days trading horizon JB Hunt Transport is expected to generate 0.85 times more return on investment than Taylor Maritime. However, JB Hunt Transport is 1.18 times less risky than Taylor Maritime. It trades about -0.12 of its potential returns per unit of risk. Taylor Maritime Investments is currently generating about -0.19 per unit of risk. If you would invest  16,968  in JB Hunt Transport on December 30, 2024 and sell it today you would lose (2,222) from holding JB Hunt Transport or give up 13.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

JB Hunt Transport  vs.  Taylor Maritime Investments

JB Hunt Transport

Risk-Adjusted Performance

Very Weak

Over the last 90 days JB Hunt Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Taylor Maritime Inve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Taylor Maritime Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with JB Hunt and Taylor Maritime

The main advantage of trading using opposite JB Hunt and Taylor Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Taylor Maritime 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 Taylor Maritime will offset losses from the drop in Taylor Maritime's long position.

The idea behind JB Hunt Transport and Taylor Maritime Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.