Correlation Between JB Hunt and Enduro Metals

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

Diversification Opportunities for JB Hunt and Enduro Metals

0.25

Correlation Coefficient

JB Hunt  Enduro Metals

Modest diversification

The 3 months correlation between JBHT and Enduro is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Enduro Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enduro Metals 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 Enduro Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enduro Metals has no effect on the direction of JB Hunt i.e., JB Hunt and Enduro Metals go up and down completely randomly.

Pair Corralation between JB Hunt and Enduro Metals

Given the investment horizon of 90 days JB Hunt Transport is expected to under-perform the Enduro Metals. But the stock apears to be less risky and, when comparing its historical volatility, JB Hunt Transport is 2.34 times less risky than Enduro Metals. The stock trades about -0.06 of its potential returns per unit of risk. The Enduro Metals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Enduro Metals on July 17, 2025 and sell it today you would earn a total of  2.00  from holding Enduro Metals or generate 18.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

JB Hunt Transport  vs.  Enduro Metals

JB Hunt Transport

Risk-Adjusted Performance

Weakest

Over the last 90 days JB Hunt Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Enduro Metals

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Enduro Metals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Enduro Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JB Hunt and Enduro Metals

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

The idea behind JB Hunt Transport and Enduro Metals 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.