Correlation Between Expeditors International and Globavend Holdings
Can any of the company-specific risk be diversified away by investing in both Expeditors International and Globavend Holdings 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 Globavend Holdings 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 Globavend Holdings Limited, you can compare the effects of market volatilities on Expeditors International and Globavend Holdings 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 Globavend Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expeditors International and Globavend Holdings.
Diversification Opportunities for Expeditors International and Globavend Holdings
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Expeditors and Globavend is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of and Globavend Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globavend Holdings 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 Globavend Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globavend Holdings has no effect on the direction of Expeditors International i.e., Expeditors International and Globavend Holdings go up and down completely randomly.
Pair Corralation between Expeditors International and Globavend Holdings
Given the investment horizon of 90 days Expeditors International of is expected to generate 0.17 times more return on investment than Globavend Holdings. However, Expeditors International of is 5.93 times less risky than Globavend Holdings. It trades about 0.03 of its potential returns per unit of risk. Globavend Holdings Limited is currently generating about -0.02 per unit of risk. If you would invest 10,438 in Expeditors International of on September 12, 2024 and sell it today you would earn a total of 1,672 from holding Expeditors International of or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 55.56% |
| Values | Daily Returns |
Expeditors International of vs. Globavend Holdings Limited
Performance |
| Timeline |
| Expeditors International |
| Globavend Holdings |
Expeditors International and Globavend Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expeditors International and Globavend Holdings
The main advantage of trading using opposite Expeditors International and Globavend Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expeditors International position performs unexpectedly, Globavend Holdings 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 Globavend Holdings will offset losses from the drop in Globavend Holdings' long position.| Expeditors International vs. Landstar System | Expeditors International vs. JB Hunt Transport | Expeditors International vs. Hub Group | Expeditors International vs. Forward Air |
| Globavend Holdings vs. GXO Logistics | Globavend Holdings vs. JB Hunt Transport | Globavend Holdings vs. Expeditors International of | Globavend Holdings 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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