Correlation Between Jacobs Solutions and JB Hunt

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

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

Diversification Opportunities for Jacobs Solutions and JB Hunt

0.77

Correlation Coefficient

Jacobs Solutions  JB Hunt

Poor diversification

The 3 months correlation between Jacobs and JBHT is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions 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 Jacobs Solutions 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 Jacobs Solutions 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 Jacobs Solutions i.e., Jacobs Solutions and JB Hunt go up and down completely randomly.

Pair Corralation between Jacobs Solutions and JB Hunt

Taking into account the 90-day investment horizon Jacobs Solutions is expected to generate 0.7 times more return on investment than JB Hunt. However, Jacobs Solutions is 1.43 times less risky than JB Hunt. It trades about 0.15 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.07 per unit of risk. If you would invest  12,511  in Jacobs Solutions on May 2, 2025 and sell it today you would earn a total of  1,676  from holding Jacobs Solutions or generate 13.4% return on investment over 90 days.

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

Jacobs Solutions  vs.  JB Hunt Transport

Jacobs Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jacobs Solutions are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Jacobs Solutions revealed solid returns over the last few months and may actually be approaching a breakup point.

JB Hunt Transport

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical indicators, JB Hunt may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Jacobs Solutions and JB Hunt

The main advantage of trading using opposite Jacobs Solutions and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions 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 Jacobs Solutions 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.