Correlation Between GXO Logistics and Prosegur Cash
Can any of the company-specific risk be diversified away by investing in both GXO Logistics and Prosegur Cash 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 Prosegur Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GXO Logistics and Prosegur Cash SA, you can compare the effects of market volatilities on GXO Logistics and Prosegur Cash 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 Prosegur Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of GXO Logistics and Prosegur Cash.
Diversification Opportunities for GXO Logistics and Prosegur Cash
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GXO and Prosegur is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GXO Logistics and Prosegur Cash SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosegur Cash SA 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 Prosegur Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosegur Cash SA has no effect on the direction of GXO Logistics i.e., GXO Logistics and Prosegur Cash go up and down completely randomly.
Pair Corralation between GXO Logistics and Prosegur Cash
Considering the 90-day investment horizon GXO Logistics is expected to under-perform the Prosegur Cash. In addition to that, GXO Logistics is 1.59 times more volatile than Prosegur Cash SA. It trades about 0.0 of its total potential returns per unit of risk. Prosegur Cash SA is currently generating about 0.0 per unit of volatility. If you would invest 63.00 in Prosegur Cash SA on November 5, 2024 and sell it today you would lose (2.00) from holding Prosegur Cash SA or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 65.99% |
| Values | Daily Returns |
GXO Logistics vs. Prosegur Cash SA
Performance |
| Timeline |
| GXO Logistics |
| Prosegur Cash SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GXO Logistics and Prosegur Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GXO Logistics and Prosegur Cash
The main advantage of trading using opposite GXO Logistics and Prosegur Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GXO Logistics position performs unexpectedly, Prosegur Cash 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 Prosegur Cash will offset losses from the drop in Prosegur Cash'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 |
| Prosegur Cash vs. Freightos Limited Ordinary | Prosegur Cash vs. Addentax Group Corp | Prosegur Cash vs. Forward Air | Prosegur Cash vs. Shengfeng Development Limited |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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