Correlation Between Bollor SE and Expeditors International

Can any of the company-specific risk be diversified away by investing in both Bollor SE and Expeditors International 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 Bollor SE and Expeditors International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bollor SE and Expeditors International of, you can compare the effects of market volatilities on Bollor SE and Expeditors International 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 Bollor SE with a short position of Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bollor SE and Expeditors International.

Diversification Opportunities for Bollor SE and Expeditors International

0.23

Correlation Coefficient

Bollor SE  Expeditors International

Modest diversification

The 3 months correlation between Bollor and Expeditors is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bollor SE and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International and Bollor SE 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 Bollor SE are associated (or correlated) with Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Bollor SE i.e., Bollor SE and Expeditors International go up and down completely randomly.

Pair Corralation between Bollor SE and Expeditors International

Assuming the 90 days horizon Bollor SE is expected to generate 1.01 times more return on investment than Expeditors International. However, Bollor SE is 1.01 times more volatile than Expeditors International of. It trades about 0.0 of its potential returns per unit of risk. Expeditors International of is currently generating about -0.02 per unit of risk. If you would invest  587.00  in Bollor SE on October 22, 2024 and sell it today you would lose (9.00) from holding Bollor SE or give up 1.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bollor SE  vs.  Expeditors International of

Bollor SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bollor SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bollor SE is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Expeditors International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Expeditors International of has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Expeditors International is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bollor SE and Expeditors International

The main advantage of trading using opposite Bollor SE and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bollor SE position performs unexpectedly, Expeditors International 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 Expeditors International will offset losses from the drop in Expeditors International's long position.

The idea behind Bollor SE and Expeditors International of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.