Correlation Between CH Robinson and Hub
Can any of the company-specific risk be diversified away by investing in both CH Robinson and Hub 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 Hub 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 Hub Group, you can compare the effects of market volatilities on CH Robinson and Hub 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 Hub. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and Hub.
Diversification Opportunities for CH Robinson and Hub
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CHRW and Hub is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide and Hub Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Group 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 Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Group has no effect on the direction of CH Robinson i.e., CH Robinson and Hub go up and down completely randomly.
Pair Corralation between CH Robinson and Hub
Given the investment horizon of 90 days CH Robinson Worldwide is expected to generate 0.99 times more return on investment than Hub. However, CH Robinson Worldwide is 1.01 times less risky than Hub. It trades about 0.12 of its potential returns per unit of risk. Hub Group is currently generating about 0.08 per unit of risk. If you would invest 8,491 in CH Robinson Worldwide on August 24, 2024 and sell it today you would earn a total of 2,363 from holding CH Robinson Worldwide or generate 27.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CH Robinson Worldwide vs. Hub Group
Performance |
| Timeline |
| CH Robinson Worldwide |
| Hub Group |
CH Robinson and Hub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Robinson and Hub
The main advantage of trading using opposite CH Robinson and Hub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson position performs unexpectedly, Hub 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 Hub will offset losses from the drop in Hub's long position.| CH Robinson vs. JB Hunt Transport | CH Robinson vs. Landstar System | CH Robinson vs. Hub Group | CH Robinson vs. Forward Air |
| Hub vs. Landstar System | Hub vs. JB Hunt Transport | Hub vs. Expeditors International of | Hub 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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