Correlation Between CH Robinson and Air T
Can any of the company-specific risk be diversified away by investing in both CH Robinson and Air T 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 Air T 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 Air T Inc, you can compare the effects of market volatilities on CH Robinson and Air T 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 Air T. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and Air T.
Diversification Opportunities for CH Robinson and Air T
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CHRW and Air is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide and Air T Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air T Inc 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 Air T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air T Inc has no effect on the direction of CH Robinson i.e., CH Robinson and Air T go up and down completely randomly.
Pair Corralation between CH Robinson and Air T
Given the investment horizon of 90 days CH Robinson Worldwide is expected to under-perform the Air T. In addition to that, CH Robinson is 1.34 times more volatile than Air T Inc. It trades about -0.03 of its total potential returns per unit of risk. Air T Inc is currently generating about 0.11 per unit of volatility. If you would invest 1,691 in Air T Inc on August 27, 2024 and sell it today you would earn a total of 49.00 from holding Air T Inc or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CH Robinson Worldwide vs. Air T Inc
Performance |
| Timeline |
| CH Robinson Worldwide |
| Air T Inc |
CH Robinson and Air T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Robinson and Air T
The main advantage of trading using opposite CH Robinson and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson position performs unexpectedly, Air T 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 Air T will offset losses from the drop in Air T's long position.| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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