Correlation Between JB Hunt and Haemonetics

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

Diversification Opportunities for JB Hunt and Haemonetics

0.84

Correlation Coefficient

JB Hunt  Haemonetics

Very poor diversification

The 3 months correlation between JBHT and Haemonetics is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics 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 Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of JB Hunt i.e., JB Hunt and Haemonetics go up and down completely randomly.

Pair Corralation between JB Hunt and Haemonetics

Given the investment horizon of 90 days JB Hunt is expected to generate 1.26 times less return on investment than Haemonetics. In addition to that, JB Hunt is 1.21 times more volatile than Haemonetics. It trades about 0.16 of its total potential returns per unit of risk. Haemonetics is currently generating about 0.24 per unit of volatility. If you would invest  5,700  in Haemonetics on April 20, 2025 and sell it today you would earn a total of  1,555  from holding Haemonetics or generate 27.28% return on investment over 90 days.

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

JB Hunt Transport  vs.  Haemonetics

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 12 (%) 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.

Haemonetics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Haemonetics are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Haemonetics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JB Hunt and Haemonetics

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

The idea behind JB Hunt Transport and Haemonetics 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.