Correlation Between Globavend Holdings and FedEx
Can any of the company-specific risk be diversified away by investing in both Globavend Holdings and FedEx 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 Globavend Holdings and FedEx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globavend Holdings Limited and FedEx, you can compare the effects of market volatilities on Globavend Holdings and FedEx 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 Globavend Holdings with a short position of FedEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globavend Holdings and FedEx.
Diversification Opportunities for Globavend Holdings and FedEx
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Globavend and FedEx is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Globavend Holdings Limited and FedEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedEx and Globavend Holdings 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 Globavend Holdings Limited are associated (or correlated) with FedEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FedEx has no effect on the direction of Globavend Holdings i.e., Globavend Holdings and FedEx go up and down completely randomly.
Pair Corralation between Globavend Holdings and FedEx
Considering the 90-day investment horizon Globavend Holdings Limited is expected to under-perform the FedEx. In addition to that, Globavend Holdings is 4.37 times more volatile than FedEx. It trades about -0.02 of its total potential returns per unit of risk. FedEx is currently generating about 0.04 per unit of volatility. 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 |
Globavend Holdings Limited vs. FedEx
Performance |
| Timeline |
| Globavend Holdings |
| FedEx |
Globavend Holdings and FedEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globavend Holdings and FedEx
The main advantage of trading using opposite Globavend Holdings and FedEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globavend Holdings position performs unexpectedly, FedEx 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 FedEx will offset losses from the drop in FedEx's long position.| Globavend Holdings vs. Aptiv PLC | Globavend Holdings vs. Amkor Technology | Globavend Holdings vs. Highway Holdings Limited | Globavend Holdings vs. BRP Inc |
| FedEx vs. GXO Logistics | FedEx vs. JB Hunt Transport | FedEx vs. Expeditors International of | FedEx 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |