Correlation Between GXO Logistics and Freightos Limited
Can any of the company-specific risk be diversified away by investing in both GXO Logistics and Freightos Limited 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 Freightos Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GXO Logistics and Freightos Limited Ordinary, you can compare the effects of market volatilities on GXO Logistics and Freightos Limited 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 Freightos Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of GXO Logistics and Freightos Limited.
Diversification Opportunities for GXO Logistics and Freightos Limited
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GXO and Freightos is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GXO Logistics and Freightos Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freightos Limited 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 Freightos Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freightos Limited has no effect on the direction of GXO Logistics i.e., GXO Logistics and Freightos Limited go up and down completely randomly.
Pair Corralation between GXO Logistics and Freightos Limited
Considering the 90-day investment horizon GXO Logistics is expected to under-perform the Freightos Limited. But the stock apears to be less risky and, when comparing its historical volatility, GXO Logistics is 2.83 times less risky than Freightos Limited. The stock trades about 0.0 of its potential returns per unit of risk. The Freightos Limited Ordinary is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Freightos Limited Ordinary on November 5, 2024 and sell it today you would lose (175.00) from holding Freightos Limited Ordinary or give up 30.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GXO Logistics vs. Freightos Limited Ordinary
Performance |
| Timeline |
| GXO Logistics |
| Freightos Limited |
GXO Logistics and Freightos Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GXO Logistics and Freightos Limited
The main advantage of trading using opposite GXO Logistics and Freightos Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GXO Logistics position performs unexpectedly, Freightos Limited 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 Freightos Limited will offset losses from the drop in Freightos Limited'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 |
| Freightos Limited vs. Hub Group | Freightos Limited vs. Landstar System | Freightos Limited vs. JB Hunt Transport | Freightos Limited vs. Expeditors International of |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |