Correlation Between Freightos Limited and GXO Logistics
Can any of the company-specific risk be diversified away by investing in both Freightos Limited and GXO Logistics 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 GXO Logistics 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 GXO Logistics, you can compare the effects of market volatilities on Freightos Limited and GXO Logistics 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 GXO Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freightos Limited and GXO Logistics.
Diversification Opportunities for Freightos Limited and GXO Logistics
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freightos and GXO is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Freightos Limited Ordinary and GXO Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GXO Logistics 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 GXO Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GXO Logistics has no effect on the direction of Freightos Limited i.e., Freightos Limited and GXO Logistics go up and down completely randomly.
Pair Corralation between Freightos Limited and GXO Logistics
Given the investment horizon of 90 days Freightos Limited Ordinary is expected to generate 2.86 times more return on investment than GXO Logistics. However, Freightos Limited is 2.86 times more volatile than GXO Logistics. It trades about 0.0 of its potential returns per unit of risk. GXO Logistics is currently generating about -0.01 per unit of risk. If you would invest 834.00 in Freightos Limited Ordinary on October 25, 2024 and sell it today you would lose (464.00) from holding Freightos Limited Ordinary or give up 55.64% 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. GXO Logistics
Performance |
| Timeline |
| Freightos Limited |
| GXO Logistics |
Freightos Limited and GXO Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freightos Limited and GXO Logistics
The main advantage of trading using opposite Freightos Limited and GXO Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freightos Limited position performs unexpectedly, GXO Logistics 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 GXO Logistics will offset losses from the drop in GXO Logistics' long position.| Freightos Limited vs. Hub Group | Freightos Limited vs. Landstar System | Freightos Limited vs. JB Hunt Transport | Freightos Limited vs. Expeditors International of |
| GXO Logistics vs. Forward Air | GXO Logistics vs. Landstar System | GXO Logistics vs. JB Hunt Transport | GXO Logistics vs. Expeditors International of |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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