Correlation Between FORWARD AIR and Arthur J
Can any of the company-specific risk be diversified away by investing in both FORWARD AIR and Arthur J 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 Arthur J 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 Arthur J Gallagher, you can compare the effects of market volatilities on FORWARD AIR and Arthur J 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 Arthur J. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and Arthur J.
Diversification Opportunities for FORWARD AIR and Arthur J
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FORWARD and Arthur is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and Arthur J Gallagher in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arthur J Gallagher 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 Arthur J. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arthur J Gallagher has no effect on the direction of FORWARD AIR i.e., FORWARD AIR and Arthur J go up and down completely randomly.
Pair Corralation between FORWARD AIR and Arthur J
Assuming the 90 days horizon FORWARD AIR P is expected to generate 2.51 times more return on investment than Arthur J. However, FORWARD AIR is 2.51 times more volatile than Arthur J Gallagher. It trades about 0.23 of its potential returns per unit of risk. Arthur J Gallagher is currently generating about -0.08 per unit of risk. If you would invest 1,290 in FORWARD AIR P on April 25, 2025 and sell it today you would earn a total of 1,045 from holding FORWARD AIR P or generate 81.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
FORWARD AIR P vs. Arthur J Gallagher
Performance |
Timeline |
FORWARD AIR P |
Arthur J Gallagher |
FORWARD AIR and Arthur J Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FORWARD AIR and Arthur J
The main advantage of trading using opposite FORWARD AIR and Arthur J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD AIR position performs unexpectedly, Arthur J 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 Arthur J will offset losses from the drop in Arthur J's long position.FORWARD AIR vs. COMM HEALTH SYSTEMS | FORWARD AIR vs. Firan Technology Group | FORWARD AIR vs. Amkor Technology | FORWARD AIR vs. PURETECH HEALTH PLC |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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