Correlation Between CH Robinson and Expeditors International

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

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

Diversification Opportunities for CH Robinson and Expeditors International

-0.28

Correlation Coefficient

CH Robinson  Expeditors International

Very good diversification

The 3 months correlation between CHRW and Expeditors is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International and CH Robinson 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 CH Robinson Worldwide 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 CH Robinson i.e., CH Robinson and Expeditors International go up and down completely randomly.

Pair Corralation between CH Robinson and Expeditors International

Given the investment horizon of 90 days CH Robinson Worldwide is expected to under-perform the Expeditors International. In addition to that, CH Robinson is 1.13 times more volatile than Expeditors International of. It trades about -0.01 of its total potential returns per unit of risk. Expeditors International of is currently generating about 0.09 per unit of volatility. If you would invest  11,080  in Expeditors International of on December 29, 2024 and sell it today you would earn a total of  893.00  from holding Expeditors International of or generate 8.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CH Robinson Worldwide  vs.  Expeditors International of

CH Robinson Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days CH Robinson Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CH Robinson is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Expeditors International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Expeditors International of are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Expeditors International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with CH Robinson and Expeditors International

The main advantage of trading using opposite CH Robinson and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson 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 CH Robinson Worldwide 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.