Correlation Between FORWARD AIR and AB SKF

Can any of the company-specific risk be diversified away by investing in both FORWARD AIR and AB SKF 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 AB SKF 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 AB SKF, you can compare the effects of market volatilities on FORWARD AIR and AB SKF 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 AB SKF. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and AB SKF.

Diversification Opportunities for FORWARD AIR and AB SKF

0.0

Correlation Coefficient

FORWARD AIR  AB SKF

Pay attention - limited upside

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

Pair Corralation between FORWARD AIR and AB SKF

If you would invest  1,320  in FORWARD AIR P on April 24, 2025 and sell it today you would earn a total of  945.00  from holding FORWARD AIR P or generate 71.59% return on investment over 90 days.

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

FORWARD AIR P  vs.  AB SKF

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 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FORWARD AIR reported solid returns over the last few months and may actually be approaching a breakup point.

AB SKF

Risk-Adjusted Performance

Good

Over the last 90 days AB SKF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, AB SKF is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with FORWARD AIR and AB SKF

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

The idea behind FORWARD AIR P and AB SKF 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..