Correlation Between Radiant Logistics and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Radiant Logistics 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 Radiant Logistics and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radiant Logistics and JB Hunt Transport, you can compare the effects of market volatilities on Radiant Logistics 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 Radiant Logistics with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radiant Logistics and JB Hunt.
Diversification Opportunities for Radiant Logistics and JB Hunt
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Radiant and JBHT is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Radiant Logistics 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 Radiant Logistics 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 Radiant Logistics 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 Radiant Logistics i.e., Radiant Logistics and JB Hunt go up and down completely randomly.
Pair Corralation between Radiant Logistics and JB Hunt
Given the investment horizon of 90 days Radiant Logistics is expected to generate 0.88 times more return on investment than JB Hunt. However, Radiant Logistics is 1.13 times less risky than JB Hunt. It trades about 0.12 of its potential returns per unit of risk. JB Hunt Transport is currently generating about -0.02 per unit of risk. If you would invest 674.00 in Radiant Logistics on October 26, 2024 and sell it today you would earn a total of 30.00 from holding Radiant Logistics or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Radiant Logistics vs. JB Hunt Transport
Performance |
| Timeline |
| Radiant Logistics |
| JB Hunt Transport |
Radiant Logistics and JB Hunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radiant Logistics and JB Hunt
The main advantage of trading using opposite Radiant Logistics and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radiant Logistics 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 Radiant Logistics 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.| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |