Correlation Between FORWARD AIR and TRIPCOM GROUP

Can any of the company-specific risk be diversified away by investing in both FORWARD AIR and TRIPCOM GROUP 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 FORWARD AIR and TRIPCOM GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FORWARD AIR P and TRIPCOM GROUP DL 00125, you can compare the effects of market volatilities on FORWARD AIR and TRIPCOM GROUP 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 FORWARD AIR with a short position of TRIPCOM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and TRIPCOM GROUP.

Diversification Opportunities for FORWARD AIR and TRIPCOM GROUP

-0.26

Correlation Coefficient

FORWARD AIR  TRIPCOM GROUP

Very good diversification

The 3 months correlation between FORWARD and TRIPCOM is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and TRIPCOM GROUP DL 00125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRIPCOM GROUP DL and FORWARD AIR 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 FORWARD AIR P are associated (or correlated) with TRIPCOM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRIPCOM GROUP DL has no effect on the direction of FORWARD AIR i.e., FORWARD AIR and TRIPCOM GROUP go up and down completely randomly.

Pair Corralation between FORWARD AIR and TRIPCOM GROUP

Assuming the 90 days horizon FORWARD AIR P is expected to generate 1.5 times more return on investment than TRIPCOM GROUP. However, FORWARD AIR is 1.5 times more volatile than TRIPCOM GROUP DL 00125. It trades about 0.23 of its potential returns per unit of risk. TRIPCOM GROUP DL 00125 is currently generating about 0.06 per unit of risk. If you would invest  1,250  in FORWARD AIR P on April 21, 2025 and sell it today you would earn a total of  1,065  from holding FORWARD AIR P or generate 85.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

FORWARD AIR P  vs.  TRIPCOM GROUP DL 00125

FORWARD AIR P

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FORWARD AIR P are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FORWARD AIR reported solid returns over the last few months and may actually be approaching a breakup point.

TRIPCOM GROUP DL

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TRIPCOM GROUP DL 00125 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TRIPCOM GROUP may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with FORWARD AIR and TRIPCOM GROUP

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

The idea behind FORWARD AIR P and TRIPCOM GROUP DL 00125 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.