Correlation Between Jayud Global and CH Robinson

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

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

Diversification Opportunities for Jayud Global and CH Robinson

0.25

Correlation Coefficient

Jayud Global  CH Robinson

Modest diversification

The 3 months correlation between Jayud and CHRW is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jayud Global Logistics and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide and Jayud Global 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 Jayud Global Logistics are associated (or correlated) with CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of Jayud Global i.e., Jayud Global and CH Robinson go up and down completely randomly.

Pair Corralation between Jayud Global and CH Robinson

Considering the 90-day investment horizon Jayud Global Logistics is expected to generate 9.96 times more return on investment than CH Robinson. However, Jayud Global is 9.96 times more volatile than CH Robinson Worldwide. It trades about 0.17 of its potential returns per unit of risk. CH Robinson Worldwide is currently generating about 0.12 per unit of risk. If you would invest  75.00  in Jayud Global Logistics on September 12, 2024 and sell it today you would earn a total of  116.00  from holding Jayud Global Logistics or generate 154.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jayud Global Logistics  vs.  CH Robinson Worldwide

Jayud Global Logistics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jayud Global Logistics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Jayud Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

CH Robinson Worldwide

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CH Robinson Worldwide are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, CH Robinson may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Jayud Global and CH Robinson

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

The idea behind Jayud Global Logistics and CH Robinson Worldwide 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.