Correlation Between Addentax Group and Expeditors International
Can any of the company-specific risk be diversified away by investing in both Addentax Group and Expeditors International 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 Expeditors International 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 Expeditors International of, you can compare the effects of market volatilities on Addentax Group and Expeditors International 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 Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addentax Group and Expeditors International.
Diversification Opportunities for Addentax Group and Expeditors International
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Addentax and Expeditors is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Addentax Group Corp and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International 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 Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Addentax Group i.e., Addentax Group and Expeditors International go up and down completely randomly.
Pair Corralation between Addentax Group and Expeditors International
Given the investment horizon of 90 days Addentax Group Corp is expected to under-perform the Expeditors International. In addition to that, Addentax Group is 4.35 times more volatile than Expeditors International of. It trades about -0.06 of its total potential returns per unit of risk. Expeditors International of is currently generating about 0.02 per unit of volatility. If you would invest 11,837 in Expeditors International of on August 24, 2024 and sell it today you would earn a total of 233.00 from holding Expeditors International of or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addentax Group Corp vs. Expeditors International of
Performance |
| Timeline |
| Addentax Group Corp |
| Expeditors International |
Addentax Group and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addentax Group and Expeditors International
The main advantage of trading using opposite Addentax Group and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addentax Group position performs unexpectedly, Expeditors International 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 Expeditors International will offset losses from the drop in Expeditors International's long position.| Addentax Group vs. Jayud Global Logistics | Addentax Group vs. Freightos Limited Ordinary | Addentax Group vs. Radiant Logistics | Addentax Group vs. JB Hunt Transport |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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