Correlation Between Kuehne + and JB Hunt

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

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

Diversification Opportunities for Kuehne + and JB Hunt

-0.78

Correlation Coefficient

Kuehne +  JB Hunt

Pay attention - limited upside

The 3 months correlation between Kuehne and JBHT is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International 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 Kuehne + 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 Kuehne Nagel International 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 Kuehne + i.e., Kuehne + and JB Hunt go up and down completely randomly.

Pair Corralation between Kuehne + and JB Hunt

Assuming the 90 days horizon Kuehne Nagel International is expected to generate 0.96 times more return on investment than JB Hunt. However, Kuehne Nagel International is 1.04 times less risky than JB Hunt. It trades about 0.06 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  22,949  in Kuehne Nagel International on December 28, 2024 and sell it today you would earn a total of  1,176  from holding Kuehne Nagel International or generate 5.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Kuehne Nagel International  vs.  JB Hunt Transport

Kuehne Nagel Interna

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kuehne Nagel International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Kuehne + is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 Kuehne + and JB Hunt

The main advantage of trading using opposite Kuehne + and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne + 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 Kuehne Nagel International 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.