Correlation Between JB Hunt and Ryder System

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

Diversification Opportunities for JB Hunt and Ryder System

0.9

Correlation Coefficient

JB Hunt  Ryder System

Almost no diversification

The 3 months correlation between JBHT and Ryder is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Ryder System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryder 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 Ryder System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryder System has no effect on the direction of JB Hunt i.e., JB Hunt and Ryder System go up and down completely randomly.

Pair Corralation between JB Hunt and Ryder System

Given the investment horizon of 90 days JB Hunt is expected to generate 2.44 times less return on investment than Ryder System. In addition to that, JB Hunt is 1.06 times more volatile than Ryder System. It trades about 0.07 of its total potential returns per unit of risk. Ryder System is currently generating about 0.19 per unit of volatility. If you would invest  14,397  in Ryder System on May 2, 2025 and sell it today you would earn a total of  3,460  from holding Ryder System or generate 24.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

JB Hunt Transport  vs.  Ryder System

JB Hunt Transport

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical indicators, JB Hunt may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Ryder System

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ryder System are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Ryder System reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JB Hunt and Ryder System

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

The idea behind JB Hunt Transport and Ryder 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.