Correlation Between Freightos Limited and Expeditors International
Can any of the company-specific risk be diversified away by investing in both Freightos Limited and Expeditors 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 Freightos Limited and Expeditors International 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 Expeditors International of, you can compare the effects of market volatilities on Freightos Limited and Expeditors 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 Freightos Limited with a short position of Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freightos Limited and Expeditors International.
Diversification Opportunities for Freightos Limited and Expeditors International
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Freightos and Expeditors is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Freightos Limited Ordinary and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International 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 Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Freightos Limited i.e., Freightos Limited and Expeditors International go up and down completely randomly.
Pair Corralation between Freightos Limited and Expeditors International
Given the investment horizon of 90 days Freightos Limited Ordinary is expected to generate 4.58 times more return on investment than Expeditors International. However, Freightos Limited is 4.58 times more volatile than Expeditors International of. It trades about 0.02 of its potential returns per unit of risk. Expeditors International of 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freightos Limited Ordinary vs. Expeditors International of
Performance |
| Timeline |
| Freightos Limited |
| Expeditors International |
Freightos Limited and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freightos Limited and Expeditors International
The main advantage of trading using opposite Freightos Limited and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freightos Limited position performs unexpectedly, Expeditors 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 Expeditors International will offset losses from the drop in Expeditors International'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 |
| Expeditors International vs. GXO Logistics | Expeditors International vs. JB Hunt Transport | Expeditors International vs. CH Robinson Worldwide | Expeditors International vs. Hub Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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