Correlation Between Wenzhou Kangning and FORWARD AIR
Can any of the company-specific risk be diversified away by investing in both Wenzhou Kangning and FORWARD AIR 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 Wenzhou Kangning and FORWARD AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wenzhou Kangning Hospital and FORWARD AIR P, you can compare the effects of market volatilities on Wenzhou Kangning and FORWARD AIR 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 Wenzhou Kangning with a short position of FORWARD AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Kangning and FORWARD AIR.
Diversification Opportunities for Wenzhou Kangning and FORWARD AIR
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wenzhou and FORWARD is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Kangning Hospital and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P and Wenzhou Kangning 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 Wenzhou Kangning Hospital are associated (or correlated) with FORWARD AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORWARD AIR P has no effect on the direction of Wenzhou Kangning i.e., Wenzhou Kangning and FORWARD AIR go up and down completely randomly.
Pair Corralation between Wenzhou Kangning and FORWARD AIR
Assuming the 90 days trading horizon Wenzhou Kangning Hospital is expected to under-perform the FORWARD AIR. But the stock apears to be less risky and, when comparing its historical volatility, Wenzhou Kangning Hospital is 2.25 times less risky than FORWARD AIR. The stock trades about -0.24 of its potential returns per unit of risk. The FORWARD AIR P is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 3,180 in FORWARD AIR P on October 11, 2024 and sell it today you would lose (100.00) from holding FORWARD AIR P or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wenzhou Kangning Hospital vs. FORWARD AIR P
Performance |
| Timeline |
| Wenzhou Kangning Hospital |
| FORWARD AIR P |
Wenzhou Kangning and FORWARD AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wenzhou Kangning and FORWARD AIR
The main advantage of trading using opposite Wenzhou Kangning and FORWARD AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wenzhou Kangning position performs unexpectedly, FORWARD AIR 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 FORWARD AIR will offset losses from the drop in FORWARD AIR's long position.| Wenzhou Kangning vs. WT OFFSHORE | Wenzhou Kangning vs. Richardson Electronics | Wenzhou Kangning vs. STORE ELECTRONIC | Wenzhou Kangning vs. Eidesvik Offshore ASA |
| FORWARD AIR vs. Constellation Software | FORWARD AIR vs. Treasury Wine Estates | FORWARD AIR vs. Wenzhou Kangning Hospital | FORWARD AIR vs. VIRGIN WINES UK |
Check out your portfolio center.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |