Correlation Between Schneider National and JB Hunt

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

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

Diversification Opportunities for Schneider National and JB Hunt

0.11

Correlation Coefficient

Schneider National  JB Hunt

Average diversification

The 3 months correlation between Schneider and JBHT is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Schneider National 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 Schneider National 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 Schneider National 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 Schneider National i.e., Schneider National and JB Hunt go up and down completely randomly.

Pair Corralation between Schneider National and JB Hunt

Given the investment horizon of 90 days Schneider National is expected to generate 4.89 times less return on investment than JB Hunt. But when comparing it to its historical volatility, Schneider National is 1.22 times less risky than JB Hunt. It trades about 0.04 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  14,262  in JB Hunt Transport on September 6, 2025 and sell it today you would earn a total of  4,492  from holding JB Hunt Transport or generate 31.5% return on investment over 90 days.

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

Schneider National  vs.  JB Hunt Transport

Schneider National

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Schneider National are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Schneider National is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

JB Hunt Transport

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JB Hunt Transport are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical indicators, JB Hunt unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Schneider National and JB Hunt

The main advantage of trading using opposite Schneider National and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schneider National 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 Schneider National 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.