Correlation Between CH Robinson and PS International
Can any of the company-specific risk be diversified away by investing in both CH Robinson and PS 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 PS 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 PS International Group, you can compare the effects of market volatilities on CH Robinson and PS 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 PS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and PS International.
Diversification Opportunities for CH Robinson and PS International
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CHRW and PSIG is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide and PS International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS 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 PS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS International has no effect on the direction of CH Robinson i.e., CH Robinson and PS International go up and down completely randomly.
Pair Corralation between CH Robinson and PS International
Given the investment horizon of 90 days CH Robinson Worldwide is expected to generate 0.11 times more return on investment than PS International. However, CH Robinson Worldwide is 9.13 times less risky than PS International. It trades about 0.03 of its potential returns per unit of risk. PS International Group is currently generating about -0.05 per unit of risk. If you would invest 9,459 in CH Robinson Worldwide on September 12, 2024 and sell it today you would earn a total of 1,462 from holding CH Robinson Worldwide or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.69% |
| Values | Daily Returns |
CH Robinson Worldwide vs. PS International Group
Performance |
| Timeline |
| CH Robinson Worldwide |
| PS International |
CH Robinson and PS International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Robinson and PS International
The main advantage of trading using opposite CH Robinson and PS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson position performs unexpectedly, PS 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 PS International will offset losses from the drop in PS International's long position.| CH Robinson vs. JB Hunt Transport | CH Robinson vs. Landstar System | CH Robinson vs. Hub Group | CH Robinson vs. Forward Air |
| PS International vs. GXO Logistics | PS International vs. JB Hunt Transport | PS International vs. Expeditors International of | PS International 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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