Correlation Between JB Hunt and Molten Metals

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

Diversification Opportunities for JB Hunt and Molten Metals

0.0

Correlation Coefficient

JB Hunt  Molten Metals

Pay attention - limited upside

The 3 months correlation between JBHT and Molten is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Molten Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molten Metals 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 Molten Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molten Metals Corp has no effect on the direction of JB Hunt i.e., JB Hunt and Molten Metals go up and down completely randomly.

Pair Corralation between JB Hunt and Molten Metals

If you would invest  20.00  in Molten Metals Corp on July 6, 2025 and sell it today you would earn a total of  0.00  from holding Molten Metals Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

JB Hunt Transport  vs.  Molten Metals Corp

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.

Molten Metals Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Molten Metals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Molten Metals is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with JB Hunt and Molten Metals

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

The idea behind JB Hunt Transport and Molten Metals 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.