Correlation Between Fedex Corp and CH Robinson

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Can any of the company-specific risk be diversified away by investing in both Fedex Corp 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 Fedex Corp and CH Robinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fedex Corp and CH Robinson Ww, you can compare the effects of market volatilities on Fedex Corp 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 Fedex Corp with a short position of CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fedex Corp and CH Robinson.

Diversification Opportunities for Fedex Corp and CH Robinson

0.43
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Fedex and CH Robinson is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fedex Corp and CH Robinson Ww in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Ww and Fedex Corp 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 Fedex Corp 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 Ww has no effect on the direction of Fedex Corp i.e., Fedex Corp and CH Robinson go up and down completely randomly.

Pair Corralation between Fedex Corp and CH Robinson

Considering the 90-day investment horizon Fedex Corp is expected to under-perform the CH Robinson. In addition to that, Fedex Corp is 2.93 times more volatile than CH Robinson Ww. It trades about -0.25 of its total potential returns per unit of risk. CH Robinson Ww is currently generating about -0.36 per unit of volatility. If you would invest  11,290  in CH Robinson Ww on July 5, 2022 and sell it today you would lose (1,418)  from holding CH Robinson Ww or give up 12.56% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Fedex Corp  vs.  CH Robinson Ww

 Performance (%) 
       Timeline  
Fedex Corp 
Fedex Performance
0 of 100
Over the last 90 days Fedex Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Fedex Price Channel

CH Robinson Ww 
CH Robinson Performance
0 of 100
Over the last 90 days CH Robinson Ww has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CH Robinson is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

CH Robinson Price Channel

Fedex Corp and CH Robinson Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fedex Corp and CH Robinson

The main advantage of trading using opposite Fedex Corp and CH Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fedex Corp 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.
Fedex Corp vs. Amazon Inc
The idea behind Fedex Corp and CH Robinson Ww 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.
CH Robinson vs. Amazon Inc
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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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