Correlation Between Freightos Limited and CH Robinson
Can any of the company-specific risk be diversified away by investing in both Freightos Limited and CH Robinson 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 CH Robinson 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 CH Robinson Worldwide, you can compare the effects of market volatilities on Freightos Limited and CH Robinson 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 CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freightos Limited and CH Robinson.
Diversification Opportunities for Freightos Limited and CH Robinson
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Freightos and CHRW is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Freightos Limited Ordinary and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide 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 CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of Freightos Limited i.e., Freightos Limited and CH Robinson go up and down completely randomly.
Pair Corralation between Freightos Limited and CH Robinson
Given the investment horizon of 90 days Freightos Limited Ordinary is expected to generate 3.31 times more return on investment than CH Robinson. However, Freightos Limited is 3.31 times more volatile than CH Robinson Worldwide. It trades about 0.02 of its potential returns per unit of risk. CH Robinson Worldwide is currently generating about 0.01 per unit of risk. If you would invest 575.00 in Freightos Limited Ordinary on November 5, 2024 and sell it today you would lose (175.00) from holding Freightos Limited Ordinary or give up 30.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freightos Limited Ordinary vs. CH Robinson Worldwide
Performance |
| Timeline |
| Freightos Limited |
| CH Robinson Worldwide |
Freightos Limited and CH Robinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freightos Limited and CH Robinson
The main advantage of trading using opposite Freightos Limited and CH Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freightos Limited position performs unexpectedly, CH Robinson 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 CH Robinson will offset losses from the drop in CH Robinson'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 |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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