Correlation Between CH Robinson and Shengfeng Development
Can any of the company-specific risk be diversified away by investing in both CH Robinson and Shengfeng Development 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 Shengfeng Development 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 Shengfeng Development Limited, you can compare the effects of market volatilities on CH Robinson and Shengfeng Development 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 Shengfeng Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and Shengfeng Development.
Diversification Opportunities for CH Robinson and Shengfeng Development
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between CHRW and Shengfeng is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide and Shengfeng Development Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengfeng Development 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 Shengfeng Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengfeng Development has no effect on the direction of CH Robinson i.e., CH Robinson and Shengfeng Development go up and down completely randomly.
Pair Corralation between CH Robinson and Shengfeng Development
Given the investment horizon of 90 days CH Robinson is expected to generate 6.37 times less return on investment than Shengfeng Development. But when comparing it to its historical volatility, CH Robinson Worldwide is 5.16 times less risky than Shengfeng Development. It trades about 0.01 of its potential returns per unit of risk. Shengfeng Development Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Shengfeng Development Limited on November 5, 2024 and sell it today you would lose (304.00) from holding Shengfeng Development Limited or give up 76.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.72% |
| Values | Daily Returns |
CH Robinson Worldwide vs. Shengfeng Development Limited
Performance |
| Timeline |
| CH Robinson Worldwide |
| Shengfeng Development |
CH Robinson and Shengfeng Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Robinson and Shengfeng Development
The main advantage of trading using opposite CH Robinson and Shengfeng Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson position performs unexpectedly, Shengfeng Development 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 Shengfeng Development will offset losses from the drop in Shengfeng Development's long position.| CH Robinson vs. JB Hunt Transport | CH Robinson vs. Landstar System | CH Robinson vs. Hub Group | CH Robinson vs. Forward Air |
| Shengfeng Development vs. Jayud Global Logistics | Shengfeng Development vs. Freightos Limited Ordinary | Shengfeng Development vs. Air T Inc | Shengfeng Development 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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