Correlation Between FedEx and Air T
Can any of the company-specific risk be diversified away by investing in both FedEx and Air T 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 FedEx and Air T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FedEx and Air T Inc, you can compare the effects of market volatilities on FedEx and Air T 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 FedEx with a short position of Air T. Check out your portfolio center. Please also check ongoing floating volatility patterns of FedEx and Air T.
Diversification Opportunities for FedEx and Air T
Pay attention - limited upside
The 3 months correlation between FedEx and Air is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding FedEx and Air T Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air T Inc and FedEx 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 FedEx are associated (or correlated) with Air T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air T Inc has no effect on the direction of FedEx i.e., FedEx and Air T go up and down completely randomly.
Pair Corralation between FedEx and Air T
Considering the 90-day investment horizon FedEx is expected to under-perform the Air T. In addition to that, FedEx is 2.46 times more volatile than Air T Inc. It trades about -0.1 of its total potential returns per unit of risk. Air T Inc is currently generating about 0.06 per unit of volatility. If you would invest 1,655 in Air T Inc on December 26, 2024 and sell it today you would earn a total of 45.00 from holding Air T Inc or generate 2.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
FedEx vs. Air T Inc
Performance |
Timeline |
FedEx |
Air T Inc |
FedEx and Air T Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FedEx and Air T
The main advantage of trading using opposite FedEx and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FedEx position performs unexpectedly, Air T 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 Air T will offset losses from the drop in Air T's long position.FedEx vs. GXO Logistics | FedEx vs. JB Hunt Transport | FedEx vs. Expeditors International of | FedEx vs. CH Robinson Worldwide |
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 CEOs Directory module to screen CEOs from public companies around the world.
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