Correlation Between Prosegur Cash and Forward Air
Can any of the company-specific risk be diversified away by investing in both Prosegur Cash and Forward Air 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 Prosegur Cash and Forward Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosegur Cash SA and Forward Air, you can compare the effects of market volatilities on Prosegur Cash and Forward Air 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 Prosegur Cash with a short position of Forward Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosegur Cash and Forward Air.
Diversification Opportunities for Prosegur Cash and Forward Air
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prosegur and Forward is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Prosegur Cash SA and Forward Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forward Air and Prosegur Cash 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 Prosegur Cash SA are associated (or correlated) with Forward Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forward Air has no effect on the direction of Prosegur Cash i.e., Prosegur Cash and Forward Air go up and down completely randomly.
Pair Corralation between Prosegur Cash and Forward Air
Assuming the 90 days horizon Prosegur Cash is expected to generate 275.13 times less return on investment than Forward Air. But when comparing it to its historical volatility, Prosegur Cash SA is 7.7 times less risky than Forward Air. It trades about 0.0 of its potential returns per unit of risk. Forward Air is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,224 in Forward Air on August 31, 2024 and sell it today you would earn a total of 375.00 from holding Forward Air or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Prosegur Cash SA vs. Forward Air
Performance |
| Timeline |
| Prosegur Cash SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Forward Air |
Prosegur Cash and Forward Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosegur Cash and Forward Air
The main advantage of trading using opposite Prosegur Cash and Forward Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosegur Cash position performs unexpectedly, Forward Air 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 Forward Air will offset losses from the drop in Forward Air's long position.| Prosegur Cash vs. Freightos Limited Ordinary | Prosegur Cash vs. Addentax Group Corp | Prosegur Cash vs. Forward Air | Prosegur Cash vs. Shengfeng Development Limited |
| Forward Air vs. GXO Logistics | Forward Air vs. JB Hunt Transport | Forward Air vs. Expeditors International of | Forward Air vs. CH Robinson Worldwide |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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