Correlation Between US Xpress and Universal Logistics
Can any of the company-specific risk be diversified away by investing in both US Xpress and Universal 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 US Xpress and Universal Logistics 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 Universal Logistics Holdings, you can compare the effects of market volatilities on US Xpress and Universal 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 US Xpress with a short position of Universal Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Xpress and Universal Logistics.
Diversification Opportunities for US Xpress and Universal Logistics
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between USX and Universal is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding US Xpress Enterprises and Universal Logistics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Logistics 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 Universal Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Logistics has no effect on the direction of US Xpress i.e., US Xpress and Universal Logistics go up and down completely randomly.
Pair Corralation between US Xpress and Universal Logistics
If you would invest 3,962 in Universal Logistics Holdings on August 27, 2024 and sell it today you would earn a total of 1,184 from holding Universal Logistics Holdings or generate 29.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
US Xpress Enterprises vs. Universal Logistics Holdings
Performance |
| Timeline |
| US Xpress Enterprises |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Universal Logistics |
US Xpress and Universal Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Xpress and Universal Logistics
The main advantage of trading using opposite US Xpress and Universal Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Xpress position performs unexpectedly, Universal 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 Universal Logistics will offset losses from the drop in Universal Logistics' long position.| US Xpress vs. Heartland Express | US Xpress vs. Universal Logistics Holdings | US Xpress vs. Marten Transport | US Xpress vs. Werner Enterprises |
| Universal Logistics vs. Covenant Logistics Group, | Universal Logistics vs. Marten Transport | Universal Logistics vs. Midland States Bancorp | Universal Logistics vs. PC Connection |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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