Correlation Between JB Hunt and PAMT P

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

Diversification Opportunities for JB Hunt and PAMT P

-0.39

Correlation Coefficient

JB Hunt  PAMT P

Very good diversification

The 3 months correlation between JBHT and PAMT is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and PAMT P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAMT P 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 PAMT P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAMT P has no effect on the direction of JB Hunt i.e., JB Hunt and PAMT P go up and down completely randomly.

Pair Corralation between JB Hunt and PAMT P

Given the investment horizon of 90 days JB Hunt Transport is expected to generate 0.75 times more return on investment than PAMT P. However, JB Hunt Transport is 1.33 times less risky than PAMT P. It trades about 0.04 of its potential returns per unit of risk. PAMT P is currently generating about -0.03 per unit of risk. If you would invest  16,837  in JB Hunt Transport on September 24, 2025 and sell it today you would earn a total of  3,121  from holding JB Hunt Transport or generate 18.54% 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.  PAMT P

JB Hunt Transport

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical indicators, JB Hunt unveiled solid returns over the last few months and may actually be approaching a breakup point.

PAMT P

Risk-Adjusted Performance

Weakest

Over the last 90 days PAMT P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, PAMT P is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JB Hunt and PAMT P

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

The idea behind JB Hunt Transport and PAMT P 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..