Correlation Between CH Robinson and Expeditors International
Can any of the company-specific risk be diversified away by investing in both CH Robinson 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 CH Robinson and Expeditors International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CH Robinson Worldwide and Expeditors International of, you can compare the effects of market volatilities on CH Robinson 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 CH Robinson with a short position of Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and Expeditors International.
Diversification Opportunities for CH Robinson and Expeditors International
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CH1A and Expeditors is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International and CH Robinson 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 CH Robinson Worldwide 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 CH Robinson i.e., CH Robinson and Expeditors International go up and down completely randomly.
Pair Corralation between CH Robinson and Expeditors International
Assuming the 90 days trading horizon CH Robinson Worldwide is expected to generate 0.88 times more return on investment than Expeditors International. However, CH Robinson Worldwide is 1.14 times less risky than Expeditors International. It trades about 0.22 of its potential returns per unit of risk. Expeditors International of is currently generating about 0.18 per unit of risk. If you would invest 9,250 in CH Robinson Worldwide on September 4, 2024 and sell it today you would earn a total of 700.00 from holding CH Robinson Worldwide or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CH Robinson Worldwide vs. Expeditors International of
Performance |
| Timeline |
| CH Robinson Worldwide |
| Expeditors International |
CH Robinson and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Robinson and Expeditors International
The main advantage of trading using opposite CH Robinson and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson 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.| CH Robinson vs. PENN NATL GAMING | CH Robinson vs. Fast Retailing Co | CH Robinson vs. PICKN PAY STORES | CH Robinson vs. GigaMedia |
| Expeditors International vs. Corsair Gaming | Expeditors International vs. WIZZ AIR HLDGUNSPADR4 | Expeditors International vs. Virtus Investment Partners | Expeditors International vs. FORWARD AIR P |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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