Correlation Between Freightos Limited and JB Hunt

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

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

Diversification Opportunities for Freightos Limited and JB Hunt

0.61

Correlation Coefficient

Freightos Limited  JB Hunt

Poor diversification

The 3 months correlation between Freightos and JBHT is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Freightos Limited Ordinary 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 Freightos Limited 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 Freightos Limited Ordinary 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 Freightos Limited i.e., Freightos Limited and JB Hunt go up and down completely randomly.

Pair Corralation between Freightos Limited and JB Hunt

Given the investment horizon of 90 days Freightos Limited Ordinary is expected to generate 3.2 times more return on investment than JB Hunt. However, Freightos Limited is 3.2 times more volatile than JB Hunt Transport. It trades about -0.03 of its potential returns per unit of risk. JB Hunt Transport is currently generating about -0.12 per unit of risk. If you would invest  293.00  in Freightos Limited Ordinary on December 29, 2024 and sell it today you would lose (56.00) from holding Freightos Limited Ordinary or give up 19.11% of portfolio value over 90 days.

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

Freightos Limited Ordinary  vs.  JB Hunt Transport

Freightos Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Freightos Limited Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm 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 unsteady performance in the last few months, the Stock's technical 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 Freightos Limited and JB Hunt

The main advantage of trading using opposite Freightos Limited and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freightos Limited 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 Freightos Limited Ordinary 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.