Correlation Between FORWARD AIR and SEB SA
Can any of the company-specific risk be diversified away by investing in both FORWARD AIR and SEB SA 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 FORWARD AIR and SEB SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORWARD AIR P and SEB SA, you can compare the effects of market volatilities on FORWARD AIR and SEB SA 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 FORWARD AIR with a short position of SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and SEB SA.
Diversification Opportunities for FORWARD AIR and SEB SA
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between FORWARD and SEB is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA and FORWARD AIR 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 FORWARD AIR P are associated (or correlated) with SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of FORWARD AIR i.e., FORWARD AIR and SEB SA go up and down completely randomly.
Pair Corralation between FORWARD AIR and SEB SA
Assuming the 90 days horizon FORWARD AIR P is expected to under-perform the SEB SA. In addition to that, FORWARD AIR is 1.37 times more volatile than SEB SA. It trades about -0.07 of its total potential returns per unit of risk. SEB SA is currently generating about 0.07 per unit of volatility. If you would invest 9,240 in SEB SA on September 14, 2024 and sell it today you would earn a total of 230.00 from holding SEB SA or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FORWARD AIR P vs. SEB SA
Performance |
| Timeline |
| FORWARD AIR P |
| SEB SA |
FORWARD AIR and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FORWARD AIR and SEB SA
The main advantage of trading using opposite FORWARD AIR and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD AIR position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.| FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc |
| SEB SA vs. Ryanair Holdings plc | SEB SA vs. Flutter Entertainment PLC | SEB SA vs. LG Display Co | SEB SA vs. FORWARD AIR P |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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