Correlation Between Foxx Development and GBX International
Can any of the company-specific risk be diversified away by investing in both Foxx Development and GBX 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 Foxx Development and GBX International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foxx Development Holdings and GBX International Group, you can compare the effects of market volatilities on Foxx Development and GBX 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 Foxx Development with a short position of GBX International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foxx Development and GBX International.
Diversification Opportunities for Foxx Development and GBX International
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Foxx and GBX is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Foxx Development Holdings and GBX International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBX International and Foxx Development 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 Foxx Development Holdings are associated (or correlated) with GBX International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBX International has no effect on the direction of Foxx Development i.e., Foxx Development and GBX International go up and down completely randomly.
Pair Corralation between Foxx Development and GBX International
Given the investment horizon of 90 days Foxx Development Holdings is expected to under-perform the GBX International. But the stock apears to be less risky and, when comparing its historical volatility, Foxx Development Holdings is 1.97 times less risky than GBX International. The stock trades about -0.02 of its potential returns per unit of risk. The GBX International Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.01 in GBX International Group on September 24, 2024 and sell it today you would earn a total of 0.01 from holding GBX International Group or generate 100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 99.21% |
Values | Daily Returns |
Foxx Development Holdings vs. GBX International Group
Performance |
Timeline |
Foxx Development Holdings |
GBX International |
Foxx Development and GBX International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Foxx Development and GBX International
The main advantage of trading using opposite Foxx Development and GBX International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foxx Development position performs unexpectedly, GBX 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 GBX International will offset losses from the drop in GBX International's long position.Foxx Development vs. Harmony Gold Mining | Foxx Development vs. Summit Materials | Foxx Development vs. U Haul Holding | Foxx Development vs. Montauk Renewables |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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