Correlation Between Freightos Limited and Air T
Can any of the company-specific risk be diversified away by investing in both Freightos Limited 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 Freightos Limited and Air T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freightos Limited Ordinary and Air T Inc, you can compare the effects of market volatilities on Freightos Limited 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 Freightos Limited with a short position of Air T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freightos Limited and Air T.
Diversification Opportunities for Freightos Limited and Air T
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Freightos and Air is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Freightos Limited Ordinary 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 Freightos Limited 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 Freightos Limited Ordinary 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 Freightos Limited i.e., Freightos Limited and Air T go up and down completely randomly.
Pair Corralation between Freightos Limited and Air T
Given the investment horizon of 90 days Freightos Limited Ordinary is expected to generate 2.25 times more return on investment than Air T. However, Freightos Limited is 2.25 times more volatile than Air T Inc. It trades about 0.25 of its potential returns per unit of risk. Air T Inc is currently generating about -0.08 per unit of risk. If you would invest 286.00 in Freightos Limited Ordinary on October 26, 2024 and sell it today you would earn a total of 73.50 from holding Freightos Limited Ordinary or generate 25.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Freightos Limited Ordinary vs. Air T Inc
Performance |
| Timeline |
| Freightos Limited |
| Air T Inc |
Freightos Limited and Air T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freightos Limited and Air T
The main advantage of trading using opposite Freightos Limited and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freightos Limited 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.| Freightos Limited vs. Hub Group | Freightos Limited vs. Landstar System | Freightos Limited vs. JB Hunt Transport | Freightos Limited vs. Expeditors International of |
| Air T vs. Addentax Group Corp | Air T vs. Hub Group | Air T vs. Landstar System | Air T vs. JB Hunt Transport |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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