Correlation Between GXO Logistics and Expeditors International
Can any of the company-specific risk be diversified away by investing in both GXO Logistics and Expeditors International 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 Expeditors International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GXO Logistics and Expeditors International of, you can compare the effects of market volatilities on GXO Logistics and Expeditors International 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 Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GXO Logistics and Expeditors International.
Diversification Opportunities for GXO Logistics and Expeditors International
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GXO and Expeditors is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding GXO Logistics and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International 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 Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of GXO Logistics i.e., GXO Logistics and Expeditors International go up and down completely randomly.
Pair Corralation between GXO Logistics and Expeditors International
Considering the 90-day investment horizon GXO Logistics is expected to under-perform the Expeditors International. In addition to that, GXO Logistics is 1.62 times more volatile than Expeditors International of. It trades about 0.0 of its total potential returns per unit of risk. Expeditors International of is currently generating about 0.01 per unit of volatility. If you would invest 11,044 in Expeditors International of on November 5, 2024 and sell it today you would earn a total of 314.00 from holding Expeditors International of or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GXO Logistics vs. Expeditors International of
Performance |
| Timeline |
| GXO Logistics |
| Expeditors International |
GXO Logistics and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GXO Logistics and Expeditors International
The main advantage of trading using opposite GXO Logistics and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GXO Logistics position performs unexpectedly, Expeditors International 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 Expeditors International will offset losses from the drop in Expeditors International'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 |
| Expeditors International vs. GXO Logistics | Expeditors International vs. JB Hunt Transport | Expeditors International vs. CH Robinson Worldwide | Expeditors International vs. Hub Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stocks Directory Find actively traded stocks across global markets |