Correlation Between Forward Air and BingEx
Can any of the company-specific risk be diversified away by investing in both Forward Air and BingEx 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 BingEx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forward Air and BingEx, you can compare the effects of market volatilities on Forward Air and BingEx 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 BingEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forward Air and BingEx.
Diversification Opportunities for Forward Air and BingEx
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Forward and BingEx is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Forward Air and BingEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BingEx 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 are associated (or correlated) with BingEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BingEx has no effect on the direction of Forward Air i.e., Forward Air and BingEx go up and down completely randomly.
Pair Corralation between Forward Air and BingEx
Given the investment horizon of 90 days Forward Air is expected to generate 0.65 times more return on investment than BingEx. However, Forward Air is 1.54 times less risky than BingEx. It trades about -0.04 of its potential returns per unit of risk. BingEx is currently generating about -0.13 per unit of risk. If you would invest 10,322 in Forward Air on November 5, 2024 and sell it today you would lose (7,097) from holding Forward Air or give up 68.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 16.8% |
| Values | Daily Returns |
Forward Air vs. BingEx
Performance |
| Timeline |
| Forward Air |
| BingEx |
Forward Air and BingEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forward Air and BingEx
The main advantage of trading using opposite Forward Air and BingEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forward Air position performs unexpectedly, BingEx 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 BingEx will offset losses from the drop in BingEx's long position.| Forward Air vs. Landstar System | Forward Air vs. JB Hunt Transport | Forward Air vs. Expeditors International of | Forward Air vs. CH Robinson Worldwide |
| BingEx vs. Flutter Entertainment plc | BingEx vs. NorthWestern | BingEx vs. Gladstone Investment | BingEx vs. American Clean Resources |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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