Correlation Between US Xpress and Heartland Express
Can any of the company-specific risk be diversified away by investing in both US Xpress and Heartland Express 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 US Xpress and Heartland Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Xpress Enterprises and Heartland Express, you can compare the effects of market volatilities on US Xpress and Heartland Express 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 US Xpress with a short position of Heartland Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Xpress and Heartland Express.
Diversification Opportunities for US Xpress and Heartland Express
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between USX and Heartland is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding US Xpress Enterprises and Heartland Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heartland Express and US Xpress 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 US Xpress Enterprises are associated (or correlated) with Heartland Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heartland Express has no effect on the direction of US Xpress i.e., US Xpress and Heartland Express go up and down completely randomly.
Pair Corralation between US Xpress and Heartland Express
If you would invest 1,138 in Heartland Express on August 27, 2024 and sell it today you would earn a total of 99.00 from holding Heartland Express or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
US Xpress Enterprises vs. Heartland Express
Performance |
| Timeline |
| US Xpress Enterprises |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Heartland Express |
US Xpress and Heartland Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Xpress and Heartland Express
The main advantage of trading using opposite US Xpress and Heartland Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Xpress position performs unexpectedly, Heartland Express 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 Heartland Express will offset losses from the drop in Heartland Express' long position.| US Xpress vs. Heartland Express | US Xpress vs. Universal Logistics Holdings | US Xpress vs. Marten Transport | US Xpress vs. Werner Enterprises |
| Heartland Express vs. Werner Enterprises | Heartland Express vs. Universal Logistics Holdings | Heartland Express vs. Schneider National | Heartland Express vs. Marten Transport |
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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