Correlation Between JB Hunt and Addentax Group

Can any of the company-specific risk be diversified away by investing in both JB Hunt and Addentax Group 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 Addentax Group 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 Addentax Group Corp, you can compare the effects of market volatilities on JB Hunt and Addentax Group 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 Addentax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Addentax Group.

Diversification Opportunities for JB Hunt and Addentax Group

-0.31

Correlation Coefficient

JB Hunt  Addentax Group

Very good diversification

The 3 months correlation between JBHT and Addentax is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Addentax Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addentax Group Corp 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 Addentax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addentax Group Corp has no effect on the direction of JB Hunt i.e., JB Hunt and Addentax Group go up and down completely randomly.

Pair Corralation between JB Hunt and Addentax Group

Given the investment horizon of 90 days JB Hunt Transport is expected to generate 0.31 times more return on investment than Addentax Group. However, JB Hunt Transport is 3.28 times less risky than Addentax Group. It trades about 0.13 of its potential returns per unit of risk. Addentax Group Corp is currently generating about 0.04 per unit of risk. If you would invest  12,671  in JB Hunt Transport on April 21, 2025 and sell it today you would earn a total of  2,218  from holding JB Hunt Transport or generate 17.5% return on investment over 90 days.

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

JB Hunt Transport  vs.  Addentax Group Corp

JB Hunt Transport

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 10 (%) 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.

Addentax Group Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Addentax Group Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Addentax Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JB Hunt and Addentax Group

The main advantage of trading using opposite JB Hunt and Addentax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Addentax Group 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 Addentax Group will offset losses from the drop in Addentax Group's long position.

The idea behind JB Hunt Transport and Addentax Group Corp 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.