Correlation Between JB Hunt and Rentokil Initial

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

Diversification Opportunities for JB Hunt and Rentokil Initial

0.69

Correlation Coefficient

JB Hunt  Rentokil Initial

Poor diversification

The 3 months correlation between JBHT and Rentokil is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Rentokil Initial PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rentokil Initial PLC 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 Rentokil Initial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rentokil Initial PLC has no effect on the direction of JB Hunt i.e., JB Hunt and Rentokil Initial go up and down completely randomly.

Pair Corralation between JB Hunt and Rentokil Initial

Given the investment horizon of 90 days JB Hunt Transport is expected to generate 1.74 times more return on investment than Rentokil Initial. However, JB Hunt is 1.74 times more volatile than Rentokil Initial PLC. It trades about 0.08 of its potential returns per unit of risk. Rentokil Initial PLC is currently generating about 0.1 per unit of risk. If you would invest  14,394  in JB Hunt Transport on August 26, 2025 and sell it today you would earn a total of  2,271  from holding JB Hunt Transport or generate 15.78% return on investment over 90 days.

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

JB Hunt Transport  vs.  Rentokil Initial PLC

JB Hunt Transport

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical indicators, JB Hunt unveiled solid returns over the last few months and may actually be approaching a breakup point.

Rentokil Initial PLC

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Rentokil Initial PLC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Rentokil Initial may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with JB Hunt and Rentokil Initial

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

The idea behind JB Hunt Transport and Rentokil Initial PLC 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.