Correlation Between BrightView Holdings and JB Hunt

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

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

Diversification Opportunities for BrightView Holdings and JB Hunt

0.22

Correlation Coefficient

BrightView Holdings  JB Hunt

Modest diversification

The 3 months correlation between BrightView and JBHT is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding BrightView Holdings 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 BrightView Holdings 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 BrightView Holdings 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 BrightView Holdings i.e., BrightView Holdings and JB Hunt go up and down completely randomly.

Pair Corralation between BrightView Holdings and JB Hunt

Allowing for the 90-day total investment horizon BrightView Holdings is expected to generate 1.12 times more return on investment than JB Hunt. However, BrightView Holdings is 1.12 times more volatile than JB Hunt Transport. It trades about 0.13 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.11 per unit of risk. If you would invest  1,372  in BrightView Holdings on April 30, 2025 and sell it today you would earn a total of  253.00  from holding BrightView Holdings or generate 18.44% return on investment over 90 days.

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

BrightView Holdings  vs.  JB Hunt Transport

BrightView Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BrightView Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BrightView Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

JB Hunt Transport

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical indicators, JB Hunt unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BrightView Holdings and JB Hunt

The main advantage of trading using opposite BrightView Holdings and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrightView Holdings 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 BrightView Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.