Correlation Between Jayud Global and GXO Logistics
Can any of the company-specific risk be diversified away by investing in both Jayud Global and GXO Logistics 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 GXO Logistics 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 GXO Logistics, you can compare the effects of market volatilities on Jayud Global and GXO Logistics 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 GXO Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayud Global and GXO Logistics.
Diversification Opportunities for Jayud Global and GXO Logistics
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jayud and GXO is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jayud Global Logistics and GXO Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GXO Logistics 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 GXO Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GXO Logistics has no effect on the direction of Jayud Global i.e., Jayud Global and GXO Logistics go up and down completely randomly.
Pair Corralation between Jayud Global and GXO Logistics
Considering the 90-day investment horizon Jayud Global Logistics is expected to generate 1.15 times more return on investment than GXO Logistics. However, Jayud Global is 1.15 times more volatile than GXO Logistics. It trades about 0.0 of its potential returns per unit of risk. GXO Logistics is currently generating about -0.14 per unit of risk. If you would invest 371.00 in Jayud Global Logistics on December 2, 2024 and sell it today you would lose (9.00) from holding Jayud Global Logistics or give up 2.43% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jayud Global Logistics vs. GXO Logistics
Performance |
Timeline |
Jayud Global Logistics |
GXO Logistics |
Jayud Global and GXO Logistics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jayud Global and GXO Logistics
The main advantage of trading using opposite Jayud Global and GXO Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayud Global position performs unexpectedly, GXO Logistics 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 GXO Logistics will offset losses from the drop in GXO Logistics' long position.Jayud Global vs. Regeneron Pharmaceuticals | Jayud Global vs. Ardelyx | Jayud Global vs. Tarsus Pharmaceuticals | Jayud Global vs. ANTA Sports Products |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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