Correlation Between Proficient Auto and JB Hunt

Can any of the company-specific risk be diversified away by investing in both Proficient Auto and JB Hunt 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 Proficient Auto and JB Hunt into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Proficient Auto Logistics, and JB Hunt Transport, you can compare the effects of market volatilities on Proficient Auto and JB Hunt 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 Proficient Auto with a short position of JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and JB Hunt.

Diversification Opportunities for Proficient Auto and JB Hunt

-0.35

Correlation Coefficient

Proficient Auto  JB Hunt

Very good diversification

The 3 months correlation between Proficient and JBHT is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and JB Hunt Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JB Hunt Transport and Proficient Auto 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 Proficient Auto Logistics, are associated (or correlated) with JB Hunt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JB Hunt Transport has no effect on the direction of Proficient Auto i.e., Proficient Auto and JB Hunt go up and down completely randomly.

Pair Corralation between Proficient Auto and JB Hunt

Considering the 90-day investment horizon Proficient Auto Logistics, is expected to under-perform the JB Hunt. In addition to that, Proficient Auto is 2.26 times more volatile than JB Hunt Transport. It trades about -0.02 of its total potential returns per unit of risk. JB Hunt Transport is currently generating about 0.13 per unit of volatility. If you would invest  12,671  in JB Hunt Transport on April 21, 2025 and sell it today you would earn a total of  2,218  from holding JB Hunt Transport or generate 17.5% return on investment over 90 days.

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

Proficient Auto Logistics,  vs.  JB Hunt Transport

Proficient Auto Logi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Proficient Auto Logistics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Proficient Auto is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

JB Hunt Transport

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical indicators, JB Hunt unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Proficient Auto and JB Hunt

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

The idea behind Proficient Auto Logistics, and JB Hunt Transport 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.