Correlation Between Expeditors International and Lakeside Holding
Can any of the company-specific risk be diversified away by investing in both Expeditors International and Lakeside Holding 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 Lakeside Holding 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 Lakeside Holding Limited, you can compare the effects of market volatilities on Expeditors International and Lakeside Holding 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 Lakeside Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expeditors International and Lakeside Holding.
Diversification Opportunities for Expeditors International and Lakeside Holding
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Expeditors and Lakeside is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of and Lakeside Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeside Holding 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 Lakeside Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeside Holding has no effect on the direction of Expeditors International i.e., Expeditors International and Lakeside Holding go up and down completely randomly.
Pair Corralation between Expeditors International and Lakeside Holding
Given the investment horizon of 90 days Expeditors International is expected to generate 3.5 times less return on investment than Lakeside Holding. But when comparing it to its historical volatility, Expeditors International of is 8.26 times less risky than Lakeside Holding. It trades about 0.02 of its potential returns per unit of risk. Lakeside Holding Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 401.00 in Lakeside Holding Limited on September 2, 2024 and sell it today you would lose (156.00) from holding Lakeside Holding Limited or give up 38.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 21.98% |
| Values | Daily Returns |
Expeditors International of vs. Lakeside Holding Limited
Performance |
| Timeline |
| Expeditors International |
| Lakeside Holding |
Expeditors International and Lakeside Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expeditors International and Lakeside Holding
The main advantage of trading using opposite Expeditors International and Lakeside Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expeditors International position performs unexpectedly, Lakeside Holding 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 Lakeside Holding will offset losses from the drop in Lakeside Holding's long position.| Expeditors International vs. GXO Logistics | Expeditors International vs. JB Hunt Transport | Expeditors International vs. CH Robinson Worldwide | Expeditors International vs. Landstar System |
| Lakeside Holding vs. Expeditors International of | Lakeside Holding vs. FedEx | Lakeside Holding vs. BingEx | Lakeside Holding vs. Globavend Holdings Limited |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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