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
Excellent diversification
The 3 months correlation between Kuehne and JBHT is -0.65. 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 under-perform the JB Hunt. But the pink sheet apears to be less risky and, when comparing its historical volatility, Kuehne Nagel International is 1.62 times less risky than JB Hunt. The pink sheet trades about -0.39 of its potential returns per unit of risk. The JB Hunt Transport is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 17,847 in JB Hunt Transport on August 28, 2024 and sell it today you would earn a total of 988.00 from holding JB Hunt Transport or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuehne Nagel International vs. JB Hunt Transport
Performance |
| Timeline |
| Kuehne Nagel Interna |
| JB Hunt Transport |
Kuehne + and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
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.| Kuehne + vs. DSV Panalpina AS | Kuehne + vs. CH Robinson Worldwide | Kuehne + vs. Kuehne Nagel International | Kuehne + vs. DSV Panalpina AS |
| JB Hunt vs. Forward Air | JB Hunt vs. Hub Group | JB Hunt vs. CH Robinson Worldwide | JB Hunt vs. Expeditors International of |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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