Correlation Between Proficient Auto and GXO Logistics
Can any of the company-specific risk be diversified away by investing in both Proficient Auto and GXO Logistics 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 Proficient Auto and GXO Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proficient Auto Logistics, and GXO Logistics, you can compare the effects of market volatilities on Proficient Auto and GXO Logistics 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 Proficient Auto with a short position of GXO Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and GXO Logistics.
Diversification Opportunities for Proficient Auto and GXO Logistics
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Proficient and GXO is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and GXO Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GXO Logistics and Proficient Auto 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 Proficient Auto Logistics, are associated (or correlated) with GXO Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GXO Logistics has no effect on the direction of Proficient Auto i.e., Proficient Auto and GXO Logistics go up and down completely randomly.
Pair Corralation between Proficient Auto and GXO Logistics
Considering the 90-day investment horizon Proficient Auto Logistics, is expected to under-perform the GXO Logistics. In addition to that, Proficient Auto is 1.66 times more volatile than GXO Logistics. It trades about -0.05 of its total potential returns per unit of risk. GXO Logistics is currently generating about 0.0 per unit of volatility. If you would invest 5,319 in GXO Logistics on November 5, 2024 and sell it today you would lose (774.00) from holding GXO Logistics or give up 14.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 37.45% |
| Values | Daily Returns |
Proficient Auto Logistics, vs. GXO Logistics
Performance |
| Timeline |
| Proficient Auto Logi |
| GXO Logistics |
Proficient Auto and GXO Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proficient Auto and GXO Logistics
The main advantage of trading using opposite Proficient Auto and GXO Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto position performs unexpectedly, GXO Logistics 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 GXO Logistics will offset losses from the drop in GXO Logistics' long position.| Proficient Auto vs. Expeditors International of | Proficient Auto vs. FedEx | Proficient Auto vs. BingEx | Proficient Auto vs. Globavend Holdings Limited |
| GXO Logistics vs. Forward Air | GXO Logistics vs. Landstar System | GXO Logistics vs. JB Hunt Transport | GXO Logistics 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |