Correlation Between Expeditors International and FedEx
Can any of the company-specific risk be diversified away by investing in both Expeditors International and FedEx 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 FedEx 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 FedEx, you can compare the effects of market volatilities on Expeditors International and FedEx 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 FedEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expeditors International and FedEx.
Diversification Opportunities for Expeditors International and FedEx
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Expeditors and FedEx is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of and FedEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedEx 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 FedEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FedEx has no effect on the direction of Expeditors International i.e., Expeditors International and FedEx go up and down completely randomly.
Pair Corralation between Expeditors International and FedEx
Given the investment horizon of 90 days Expeditors International of is expected to generate 1.01 times more return on investment than FedEx. However, Expeditors International is 1.01 times more volatile than FedEx. It trades about 0.09 of its potential returns per unit of risk. FedEx is currently generating about -0.13 per unit of risk. If you would invest 11,128 in Expeditors International of on November 4, 2024 and sell it today you would earn a total of 230.00 from holding Expeditors International of or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expeditors International of vs. FedEx
Performance |
| Timeline |
| Expeditors International |
| FedEx |
Expeditors International and FedEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expeditors International and FedEx
The main advantage of trading using opposite Expeditors International and FedEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expeditors International position performs unexpectedly, FedEx 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 FedEx will offset losses from the drop in FedEx's long position.| Expeditors International vs. Landstar System | Expeditors International vs. JB Hunt Transport | Expeditors International vs. Hub Group | Expeditors International vs. Forward Air |
| FedEx vs. GXO Logistics | FedEx vs. JB Hunt Transport | FedEx vs. Expeditors International of | FedEx 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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