Correlation Between Freightos Limited and Cryoport

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

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

Diversification Opportunities for Freightos Limited and Cryoport

0.12

Correlation Coefficient

Freightos Limited  Cryoport

Average diversification

The 3 months correlation between Freightos and Cryoport is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Freightos Limited Ordinary and Cryoport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cryoport and Freightos Limited 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 Freightos Limited Ordinary are associated (or correlated) with Cryoport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cryoport has no effect on the direction of Freightos Limited i.e., Freightos Limited and Cryoport go up and down completely randomly.

Pair Corralation between Freightos Limited and Cryoport

Given the investment horizon of 90 days Freightos Limited Ordinary is expected to generate 1.8 times more return on investment than Cryoport. However, Freightos Limited is 1.8 times more volatile than Cryoport. It trades about 0.18 of its potential returns per unit of risk. Cryoport is currently generating about 0.01 per unit of risk. If you would invest  145.00  in Freightos Limited Ordinary on September 27, 2024 and sell it today you would earn a total of  143.00  from holding Freightos Limited Ordinary or generate 98.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Freightos Limited Ordinary  vs.  Cryoport

Freightos Limited

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Freightos Limited Ordinary are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Freightos Limited displayed solid returns over the last few months and may actually be approaching a breakup point.

Cryoport

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cryoport are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Cryoport is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Freightos Limited and Cryoport

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

The idea behind Freightos Limited Ordinary and Cryoport 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.