Correlation Between FORWARD AIR and LEO LITHIUM

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

By analyzing existing cross correlation between FORWARD AIR P and LEO LITHIUM LTD, you can compare the effects of market volatilities on FORWARD AIR and LEO LITHIUM 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 FORWARD AIR with a short position of LEO LITHIUM. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and LEO LITHIUM.

Diversification Opportunities for FORWARD AIR and LEO LITHIUM

0.0

Correlation Coefficient

FORWARD AIR  LEO LITHIUM

Pay attention - limited upside

The 3 months correlation between FORWARD and LEO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and LEO LITHIUM LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEO LITHIUM LTD and FORWARD AIR 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 FORWARD AIR P are associated (or correlated) with LEO LITHIUM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEO LITHIUM LTD has no effect on the direction of FORWARD AIR i.e., FORWARD AIR and LEO LITHIUM go up and down completely randomly.

Pair Corralation between FORWARD AIR and LEO LITHIUM

If you would invest  3,180  in FORWARD AIR P on October 10, 2024 and sell it today you would earn a total of  20.00  from holding FORWARD AIR P or generate 0.63% return on investment over 90 days.

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

FORWARD AIR P  vs.  LEO LITHIUM LTD

FORWARD AIR P

Risk-Adjusted Performance

0 of 100

Very Weak

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

LEO LITHIUM LTD

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with FORWARD AIR and LEO LITHIUM

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

The idea behind FORWARD AIR P and LEO LITHIUM LTD 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.