Correlation Between JB Hunt and Kuehne Nagel

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

Diversification Opportunities for JB Hunt and Kuehne Nagel

-0.72

Correlation Coefficient

JB Hunt  Kuehne Nagel

Pay attention - limited upside

The 3 months correlation between JBHT and Kuehne is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Kuehne Nagel International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel Interna 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 Kuehne Nagel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuehne Nagel Interna has no effect on the direction of JB Hunt i.e., JB Hunt and Kuehne Nagel go up and down completely randomly.

Pair Corralation between JB Hunt and Kuehne Nagel

Given the investment horizon of 90 days JB Hunt Transport is expected to under-perform the Kuehne Nagel. In addition to that, JB Hunt is 1.12 times more volatile than Kuehne Nagel International. It trades about -0.12 of its total potential returns per unit of risk. Kuehne Nagel International is currently generating about 0.02 per unit of volatility. If you would invest  4,605  in Kuehne Nagel International on December 28, 2024 and sell it today you would earn a total of  55.00  from holding Kuehne Nagel International or generate 1.19% return on investment over 90 days.

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

JB Hunt Transport  vs.  Kuehne Nagel International

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.

Kuehne Nagel Interna

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kuehne Nagel International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Kuehne Nagel is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JB Hunt and Kuehne Nagel

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

The idea behind JB Hunt Transport and Kuehne Nagel International 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.