Correlation Between Expeditors International and Air T
Can any of the company-specific risk be diversified away by investing in both Expeditors International 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 Expeditors International and Air T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expeditors International of and Air T Inc, you can compare the effects of market volatilities on Expeditors International 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 Expeditors International with a short position of Air T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expeditors International and Air T.
Diversification Opportunities for Expeditors International and Air T
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Expeditors and Air is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of 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 Expeditors International 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 Expeditors International of 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 Expeditors International i.e., Expeditors International and Air T go up and down completely randomly.
Pair Corralation between Expeditors International and Air T
Given the investment horizon of 90 days Expeditors International is expected to generate 3.92 times less return on investment than Air T. But when comparing it to its historical volatility, Expeditors International of is 3.08 times less risky than Air T. It trades about 0.01 of its potential returns per unit of risk. Air T Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,265 in Air T Inc on November 5, 2024 and sell it today you would lose (254.00) from holding Air T Inc or give up 11.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expeditors International of vs. Air T Inc
Performance |
| Timeline |
| Expeditors International |
| Air T Inc |
Expeditors International and Air T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expeditors International and Air T
The main advantage of trading using opposite Expeditors International and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expeditors International 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.| Expeditors International vs. GXO Logistics | Expeditors International vs. JB Hunt Transport | Expeditors International vs. CH Robinson Worldwide | Expeditors International vs. Hub Group |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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