Correlation Between Yellow Corp and Knight Transportation
Can any of the company-specific risk be diversified away by investing in both Yellow Corp and Knight Transportation 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 Yellow Corp and Knight Transportation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yellow Corp and Knight Transportation, you can compare the effects of market volatilities on Yellow Corp and Knight Transportation 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 Yellow Corp with a short position of Knight Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yellow Corp and Knight Transportation.
Diversification Opportunities for Yellow Corp and Knight Transportation
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yellow and Knight is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Yellow Corp and Knight Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knight Transportation and Yellow Corp 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 Yellow Corp are associated (or correlated) with Knight Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knight Transportation has no effect on the direction of Yellow Corp i.e., Yellow Corp and Knight Transportation go up and down completely randomly.
Pair Corralation between Yellow Corp and Knight Transportation
If you would invest 5,279 in Knight Transportation on August 23, 2024 and sell it today you would earn a total of 342.00 from holding Knight Transportation or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Yellow Corp vs. Knight Transportation
Performance |
| Timeline |
| Yellow Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Knight Transportation |
Yellow Corp and Knight Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yellow Corp and Knight Transportation
The main advantage of trading using opposite Yellow Corp and Knight Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yellow Corp position performs unexpectedly, Knight Transportation 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 Knight Transportation will offset losses from the drop in Knight Transportation's long position.| Yellow Corp vs. Saia Inc | Yellow Corp vs. Marten Transport | Yellow Corp vs. TFI International | Yellow Corp vs. Universal Logistics Holdings |
| Knight Transportation vs. Marten Transport | Knight Transportation vs. Heartland Express | Knight Transportation vs. Universal Logistics Holdings | Knight Transportation vs. Schneider National |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |