Correlation Between CH Robinson and JB Hunt

Can any of the company-specific risk be diversified away by investing in both CH Robinson 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 CH Robinson and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CH Robinson Worldwide and JB Hunt Transport, you can compare the effects of market volatilities on CH Robinson 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 CH Robinson with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and JB Hunt.

Diversification Opportunities for CH Robinson and JB Hunt

0.46

Correlation Coefficient

CH Robinson  JB Hunt

Very weak diversification

The 3 months correlation between CHRW and JBHT is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide 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 CH Robinson 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 CH Robinson Worldwide 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 CH Robinson i.e., CH Robinson and JB Hunt go up and down completely randomly.

Pair Corralation between CH Robinson and JB Hunt

Given the investment horizon of 90 days CH Robinson Worldwide is expected to generate 0.93 times more return on investment than JB Hunt. However, CH Robinson Worldwide is 1.07 times less risky than JB Hunt. It trades about 0.0 of its potential returns per unit of risk. JB Hunt Transport is currently generating about -0.1 per unit of risk. If you would invest  10,323  in CH Robinson Worldwide on December 27, 2024 and sell it today you would lose (135.00) from holding CH Robinson Worldwide or give up 1.31% of portfolio value over 90 days.

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

CH Robinson Worldwide  vs.  JB Hunt Transport

CH Robinson Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days CH Robinson Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CH Robinson is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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 latest unsteady performance, the Stock's technical indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with CH Robinson and JB Hunt

The main advantage of trading using opposite CH Robinson and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson 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.

The idea behind CH Robinson Worldwide and JB Hunt Transport 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..