Correlation Between JB Hunt and Landstar System

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

Diversification Opportunities for JB Hunt and Landstar System

0.48

Correlation Coefficient

JB Hunt  Landstar System

Very weak diversification

The 3 months correlation between JBHT and Landstar is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Landstar System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landstar System 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 Landstar System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landstar System has no effect on the direction of JB Hunt i.e., JB Hunt and Landstar System go up and down completely randomly.

Pair Corralation between JB Hunt and Landstar System

Given the investment horizon of 90 days JB Hunt Transport is expected to generate 1.05 times more return on investment than Landstar System. However, JB Hunt is 1.05 times more volatile than Landstar System. It trades about 0.03 of its potential returns per unit of risk. Landstar System is currently generating about -0.07 per unit of risk. If you would invest  13,893  in JB Hunt Transport on May 21, 2025 and sell it today you would earn a total of  359.00  from holding JB Hunt Transport or generate 2.58% return on investment over 90 days.

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

JB Hunt Transport  vs.  Landstar System

JB Hunt Transport

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical indicators, JB Hunt is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Landstar System

Risk-Adjusted Performance

Weakest

Over the last 90 days Landstar System has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with JB Hunt and Landstar System

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

The idea behind JB Hunt Transport and Landstar System 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.