Correlation Between FedEx and Globavend Holdings
Can any of the company-specific risk be diversified away by investing in both FedEx 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 FedEx and Globavend Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FedEx and Globavend Holdings Limited, you can compare the effects of market volatilities on FedEx 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 FedEx with a short position of Globavend Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FedEx and Globavend Holdings.
Diversification Opportunities for FedEx and Globavend Holdings
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FedEx and Globavend is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding FedEx and Globavend Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globavend Holdings and FedEx 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 FedEx 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 FedEx i.e., FedEx and Globavend Holdings go up and down completely randomly.
Pair Corralation between FedEx and Globavend Holdings
Considering the 90-day investment horizon FedEx is expected to generate 0.23 times more return on investment than Globavend Holdings. However, FedEx is 4.37 times less risky than Globavend Holdings. It trades about 0.04 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 20,410 in FedEx on November 5, 2024 and sell it today you would earn a total of 6,077 from holding FedEx or generate 29.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 62.42% |
| Values | Daily Returns |
FedEx vs. Globavend Holdings Limited
Performance |
| Timeline |
| FedEx |
| Globavend Holdings |
FedEx and Globavend Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FedEx and Globavend Holdings
The main advantage of trading using opposite FedEx and Globavend Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FedEx 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.| FedEx vs. GXO Logistics | FedEx vs. JB Hunt Transport | FedEx vs. Expeditors International of | FedEx vs. CH Robinson Worldwide |
| Globavend Holdings vs. Aptiv PLC | Globavend Holdings vs. Amkor Technology | Globavend Holdings vs. Highway Holdings Limited | Globavend Holdings vs. BRP Inc |
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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