Correlation Between Addentax Group and CH Robinson
Can any of the company-specific risk be diversified away by investing in both Addentax Group and CH Robinson 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 Addentax Group and CH Robinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addentax Group Corp and CH Robinson Worldwide, you can compare the effects of market volatilities on Addentax Group and CH Robinson 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 Addentax Group with a short position of CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addentax Group and CH Robinson.
Diversification Opportunities for Addentax Group and CH Robinson
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Addentax and CHRW is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Addentax Group Corp and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide and Addentax Group 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 Addentax Group Corp are associated (or correlated) with CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of Addentax Group i.e., Addentax Group and CH Robinson go up and down completely randomly.
Pair Corralation between Addentax Group and CH Robinson
Given the investment horizon of 90 days Addentax Group Corp is expected to under-perform the CH Robinson. In addition to that, Addentax Group is 2.45 times more volatile than CH Robinson Worldwide. It trades about -0.04 of its total potential returns per unit of risk. CH Robinson Worldwide is currently generating about 0.11 per unit of volatility. If you would invest 7,312 in CH Robinson Worldwide on August 27, 2024 and sell it today you would earn a total of 3,449 from holding CH Robinson Worldwide or generate 47.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addentax Group Corp vs. CH Robinson Worldwide
Performance |
| Timeline |
| Addentax Group Corp |
| CH Robinson Worldwide |
Addentax Group and CH Robinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addentax Group and CH Robinson
The main advantage of trading using opposite Addentax Group and CH Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addentax Group position performs unexpectedly, CH Robinson 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 CH Robinson will offset losses from the drop in CH Robinson's long position.| Addentax Group vs. JB Hunt Transport | Addentax Group vs. Forward Air | Addentax Group vs. Hub Group | Addentax Group vs. Landstar System |
| CH Robinson vs. JB Hunt Transport | CH Robinson vs. Landstar System | CH Robinson vs. Hub Group | CH Robinson vs. Forward Air |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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