Correlation Between Schneider National and US Xpress

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

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

Diversification Opportunities for Schneider National and US Xpress

0.0

Correlation Coefficient

Schneider National  US Xpress

Pay attention - limited upside

The 3 months correlation between Schneider and USX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Schneider National and US Xpress Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Xpress Enterprises and Schneider National 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 Schneider National are associated (or correlated) with US Xpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Xpress Enterprises has no effect on the direction of Schneider National i.e., Schneider National and US Xpress go up and down completely randomly.

Pair Corralation between Schneider National and US Xpress

If you would invest (100.00) in US Xpress Enterprises on December 28, 2024 and sell it today you would earn a total of  100.00  from holding US Xpress Enterprises or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Schneider National  vs.  US Xpress Enterprises

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.

US Xpress Enterprises

Risk-Adjusted Performance

Very Weak

Over the last 90 days US Xpress Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, US Xpress is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Schneider National and US Xpress

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

The idea behind Schneider National and US Xpress Enterprises 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.