Correlation Between Marten Transport and Schneider National

Can any of the company-specific risk be diversified away by investing in both Marten Transport and Schneider National 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 Marten Transport and Schneider National into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Marten Transport and Schneider National, you can compare the effects of market volatilities on Marten Transport and Schneider National 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 Marten Transport with a short position of Schneider National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marten Transport and Schneider National.

Diversification Opportunities for Marten Transport and Schneider National

0.95

Correlation Coefficient

Marten Transport  Schneider National

Almost no diversification

The 3 months correlation between Marten and Schneider is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Marten Transport and Schneider National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schneider National and Marten Transport 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 Marten Transport are associated (or correlated) with Schneider National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schneider National has no effect on the direction of Marten Transport i.e., Marten Transport and Schneider National go up and down completely randomly.

Pair Corralation between Marten Transport and Schneider National

Given the investment horizon of 90 days Marten Transport is expected to generate 0.99 times more return on investment than Schneider National. However, Marten Transport is 1.01 times less risky than Schneider National. It trades about -0.11 of its potential returns per unit of risk. Schneider National is currently generating about -0.24 per unit of risk. If you would invest  1,543  in Marten Transport on December 30, 2024 and sell it today you would lose (175.00) from holding Marten Transport or give up 11.34% of portfolio value over 90 days.

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

Marten Transport  vs.  Schneider National

Marten Transport

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marten Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Schneider National

Risk-Adjusted Performance

Very Weak

Over the last 90 days Schneider National has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Marten Transport and Schneider National

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

The idea behind Marten Transport and Schneider National 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.