Correlation Between PS International and Hub
Can any of the company-specific risk be diversified away by investing in both PS International and Hub 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 PS International and Hub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PS International Group and Hub Group, you can compare the effects of market volatilities on PS International and Hub 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 PS International with a short position of Hub. Check out your portfolio center. Please also check ongoing floating volatility patterns of PS International and Hub.
Diversification Opportunities for PS International and Hub
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PSIG and Hub is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PS International Group and Hub Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Group and PS International 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 PS International Group are associated (or correlated) with Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Group has no effect on the direction of PS International i.e., PS International and Hub go up and down completely randomly.
Pair Corralation between PS International and Hub
Given the investment horizon of 90 days PS International Group is expected to under-perform the Hub. In addition to that, PS International is 4.02 times more volatile than Hub Group. It trades about -0.06 of its total potential returns per unit of risk. Hub Group is currently generating about 0.04 per unit of volatility. If you would invest 4,314 in Hub Group on November 1, 2024 and sell it today you would earn a total of 178.00 from holding Hub Group or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PS International Group vs. Hub Group
Performance |
| Timeline |
| PS International |
| Hub Group |
PS International and Hub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PS International and Hub
The main advantage of trading using opposite PS International and Hub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PS International position performs unexpectedly, Hub 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 Hub will offset losses from the drop in Hub's long position.| PS International vs. Lincoln Electric Holdings | PS International vs. Rocky Brands | PS International vs. HNI Corp | PS International vs. Acco Brands |
| Hub vs. Landstar System | Hub vs. JB Hunt Transport | Hub vs. Expeditors International of | Hub 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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