Correlation Between GXO Logistics and Armlogi Holding
Can any of the company-specific risk be diversified away by investing in both GXO Logistics and Armlogi 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 GXO Logistics and Armlogi Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GXO Logistics and Armlogi Holding Corp, you can compare the effects of market volatilities on GXO Logistics and Armlogi 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 GXO Logistics with a short position of Armlogi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GXO Logistics and Armlogi Holding.
Diversification Opportunities for GXO Logistics and Armlogi Holding
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GXO and Armlogi is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding GXO Logistics and Armlogi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armlogi Holding Corp and GXO Logistics 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 GXO Logistics are associated (or correlated) with Armlogi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armlogi Holding Corp has no effect on the direction of GXO Logistics i.e., GXO Logistics and Armlogi Holding go up and down completely randomly.
Pair Corralation between GXO Logistics and Armlogi Holding
Considering the 90-day investment horizon GXO Logistics is expected to generate 8.75 times less return on investment than Armlogi Holding. But when comparing it to its historical volatility, GXO Logistics is 3.39 times less risky than Armlogi Holding. It trades about 0.02 of its potential returns per unit of risk. Armlogi Holding Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 462.00 in Armlogi Holding Corp on August 27, 2024 and sell it today you would earn a total of 132.00 from holding Armlogi Holding Corp or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.89% |
| Values | Daily Returns |
GXO Logistics vs. Armlogi Holding Corp
Performance |
| Timeline |
| GXO Logistics |
| Armlogi Holding Corp |
GXO Logistics and Armlogi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GXO Logistics and Armlogi Holding
The main advantage of trading using opposite GXO Logistics and Armlogi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GXO Logistics position performs unexpectedly, Armlogi 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 Armlogi Holding will offset losses from the drop in Armlogi Holding's long position.| GXO Logistics vs. Forward Air | GXO Logistics vs. Landstar System | GXO Logistics vs. JB Hunt Transport | GXO Logistics vs. Expeditors International of |
| Armlogi Holding vs. Western Sierra Mining | Armlogi Holding vs. Independence Realty Trust | Armlogi Holding vs. Nomura Holdings ADR | Armlogi Holding vs. Inflection Point Acquisition |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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