Correlation Between Addentax Group and Forward Air
Can any of the company-specific risk be diversified away by investing in both Addentax Group 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 Addentax Group and Forward Air 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 Forward Air, you can compare the effects of market volatilities on Addentax Group 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 Addentax Group with a short position of Forward Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addentax Group and Forward Air.
Diversification Opportunities for Addentax Group and Forward Air
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Addentax and Forward is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Addentax Group Corp and Forward Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forward Air 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 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 has no effect on the direction of Addentax Group i.e., Addentax Group and Forward Air go up and down completely randomly.
Pair Corralation between Addentax Group and Forward Air
Given the investment horizon of 90 days Addentax Group Corp is expected to under-perform the Forward Air. In addition to that, Addentax Group is 1.4 times more volatile than Forward Air. It trades about -0.16 of its total potential returns per unit of risk. Forward Air is currently generating about -0.01 per unit of volatility. If you would invest 3,255 in Forward Air on November 5, 2024 and sell it today you would lose (30.00) from holding Forward Air or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addentax Group Corp vs. Forward Air
Performance |
| Timeline |
| Addentax Group Corp |
| Forward Air |
Addentax Group and Forward Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addentax Group and Forward Air
The main advantage of trading using opposite Addentax Group and Forward Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addentax Group 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.| Addentax Group vs. Jayud Global Logistics | Addentax Group vs. Freightos Limited Ordinary | Addentax Group vs. Radiant Logistics | Addentax Group vs. JB Hunt Transport |
| Forward Air vs. Landstar System | Forward Air vs. JB Hunt Transport | Forward Air vs. Expeditors International of | Forward Air vs. CH Robinson Worldwide |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |