Correlation Between Tradegate and FORWARD AIR
Can any of the company-specific risk be diversified away by investing in both Tradegate 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 Tradegate and FORWARD AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and FORWARD AIR P, you can compare the effects of market volatilities on Tradegate 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 Tradegate with a short position of FORWARD AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and FORWARD AIR.
Diversification Opportunities for Tradegate and FORWARD AIR
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tradegate and FORWARD is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P and Tradegate 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 Tradegate AG Wertpapierhandelsbank 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 P has no effect on the direction of Tradegate i.e., Tradegate and FORWARD AIR go up and down completely randomly.
Pair Corralation between Tradegate and FORWARD AIR
Assuming the 90 days horizon Tradegate is expected to generate 2.9 times less return on investment than FORWARD AIR. But when comparing it to its historical volatility, Tradegate AG Wertpapierhandelsbank is 8.69 times less risky than FORWARD AIR. It trades about 0.08 of its potential returns per unit of risk. FORWARD AIR P is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,180 in FORWARD AIR P on October 11, 2024 and sell it today you would earn a total of 20.00 from holding FORWARD AIR P or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. FORWARD AIR P
Performance |
| Timeline |
| Tradegate AG Wertpap |
| FORWARD AIR P |
Tradegate and FORWARD AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and FORWARD AIR
The main advantage of trading using opposite Tradegate and FORWARD AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate 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.| Tradegate vs. The Charles Schwab | Tradegate vs. Superior Plus Corp | Tradegate vs. NMI Holdings | Tradegate vs. SIVERS SEMICONDUCTORS AB |
| FORWARD AIR vs. MARKET VECTR RETAIL | FORWARD AIR vs. ZURICH INSURANCE GROUP | FORWARD AIR vs. Tradegate AG Wertpapierhandelsbank | FORWARD AIR vs. CANON MARKETING JP |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |