Correlation Between JB Hunt and Air T
Can any of the company-specific risk be diversified away by investing in both JB Hunt and Air T 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 Air T 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 Air T Inc, you can compare the effects of market volatilities on JB Hunt and Air T 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 Air T. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Air T.
Diversification Opportunities for JB Hunt and Air T
Very good diversification
The 3 months correlation between JBHT and Air is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Air T Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air T Inc 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 Air T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air T Inc has no effect on the direction of JB Hunt i.e., JB Hunt and Air T go up and down completely randomly.
Pair Corralation between JB Hunt and Air T
Given the investment horizon of 90 days JB Hunt Transport is expected to under-perform the Air T. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 2.56 times less risky than Air T. The stock trades about -0.05 of its potential returns per unit of risk. The Air T Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,713 in Air T Inc on November 5, 2024 and sell it today you would earn a total of 335.00 from holding Air T Inc or generate 19.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Hunt Transport vs. Air T Inc
Performance |
| Timeline |
| JB Hunt Transport |
| Air T Inc |
JB Hunt and Air T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Hunt and Air T
The main advantage of trading using opposite JB Hunt and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Air T 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 Air T will offset losses from the drop in Air T's long position.| JB Hunt vs. Forward Air | JB Hunt vs. Hub Group | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. Expeditors International of |
| Air T vs. Addentax Group Corp | Air T vs. Hub Group | Air T vs. Landstar System | Air T vs. JB Hunt Transport |
Check out your portfolio center.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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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