Correlation Between Shengfeng Development and Freightos Limited
Can any of the company-specific risk be diversified away by investing in both Shengfeng Development and Freightos Limited 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 Shengfeng Development and Freightos Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shengfeng Development Limited and Freightos Limited Ordinary, you can compare the effects of market volatilities on Shengfeng Development and Freightos Limited 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 Shengfeng Development with a short position of Freightos Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengfeng Development and Freightos Limited.
Diversification Opportunities for Shengfeng Development and Freightos Limited
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shengfeng and Freightos is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shengfeng Development Limited and Freightos Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freightos Limited and Shengfeng 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 Shengfeng Development Limited are associated (or correlated) with Freightos Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freightos Limited has no effect on the direction of Shengfeng Development i.e., Shengfeng Development and Freightos Limited go up and down completely randomly.
Pair Corralation between Shengfeng Development and Freightos Limited
Given the investment horizon of 90 days Shengfeng Development Limited is expected to under-perform the Freightos Limited. In addition to that, Shengfeng Development is 1.31 times more volatile than Freightos Limited Ordinary. It trades about -0.01 of its total potential returns per unit of risk. Freightos Limited Ordinary is currently generating about 0.04 per unit of volatility. If you would invest 210.00 in Freightos Limited Ordinary on December 1, 2024 and sell it today you would earn a total of 75.00 from holding Freightos Limited Ordinary or generate 35.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shengfeng Development Limited vs. Freightos Limited Ordinary
Performance |
Timeline |
Shengfeng Development |
Freightos Limited |
Shengfeng Development and Freightos Limited Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shengfeng Development and Freightos Limited
The main advantage of trading using opposite Shengfeng Development and Freightos Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengfeng Development position performs unexpectedly, Freightos Limited 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 Freightos Limited will offset losses from the drop in Freightos Limited's long position.Shengfeng Development vs. Jayud Global Logistics | Shengfeng Development vs. Freightos Limited Ordinary | Shengfeng Development vs. Air T Inc | Shengfeng Development vs. Forward Air |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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