Correlation Between GXO Logistics and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both GXO Logistics and Proficient Auto 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 Proficient Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GXO Logistics and Proficient Auto Logistics,, you can compare the effects of market volatilities on GXO Logistics and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of GXO Logistics and Proficient Auto.
Diversification Opportunities for GXO Logistics and Proficient Auto
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GXO and Proficient is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding GXO Logistics and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of GXO Logistics i.e., GXO Logistics and Proficient Auto go up and down completely randomly.
Pair Corralation between GXO Logistics and Proficient Auto
Considering the 90-day investment horizon GXO Logistics is expected to under-perform the Proficient Auto. But the stock apears to be less risky and, when comparing its historical volatility, GXO Logistics is 2.03 times less risky than Proficient Auto. The stock trades about -0.11 of its potential returns per unit of risk. The Proficient Auto Logistics, is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,022 in Proficient Auto Logistics, on November 18, 2024 and sell it today you would earn a total of 58.00 from holding Proficient Auto Logistics, or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GXO Logistics vs. Proficient Auto Logistics,
Performance |
| Timeline |
| GXO Logistics |
| Proficient Auto Logi |
GXO Logistics and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GXO Logistics and Proficient Auto
The main advantage of trading using opposite GXO Logistics and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GXO Logistics position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto'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 |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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