Correlation Between DSV Panalpina and Forward Air
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and Forward Air 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 DSV Panalpina and Forward Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSV Panalpina AS and Forward Air, you can compare the effects of market volatilities on DSV Panalpina and Forward Air 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 DSV Panalpina with a short position of Forward Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and Forward Air.
Diversification Opportunities for DSV Panalpina and Forward Air
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between DSV and Forward is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Forward Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forward Air and DSV Panalpina 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 DSV Panalpina AS are associated (or correlated) with Forward Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forward Air has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Forward Air go up and down completely randomly.
Pair Corralation between DSV Panalpina and Forward Air
Assuming the 90 days horizon DSV Panalpina AS is expected to under-perform the Forward Air. But the pink sheet apears to be less risky and, when comparing its historical volatility, DSV Panalpina AS is 1.45 times less risky than Forward Air. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Forward Air is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,255 in Forward Air on November 5, 2024 and sell it today you would lose (30.00) from holding Forward Air or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
DSV Panalpina AS vs. Forward Air
Performance |
| Timeline |
| DSV Panalpina AS |
| Forward Air |
DSV Panalpina and Forward Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and Forward Air
The main advantage of trading using opposite DSV Panalpina and Forward Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Forward Air 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 Forward Air will offset losses from the drop in Forward Air's long position.| DSV Panalpina vs. Kuehne Nagel International | DSV Panalpina vs. CH Robinson Worldwide | DSV Panalpina vs. Kuehne Nagel International | DSV Panalpina vs. United Parcel Service |
| Forward Air vs. Landstar System | Forward Air vs. JB Hunt Transport | Forward Air vs. Expeditors International of | Forward Air vs. CH Robinson Worldwide |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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