Correlation Between FORWARD AIR and Zimtu Capital
Can any of the company-specific risk be diversified away by investing in both FORWARD AIR and Zimtu Capital 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 Zimtu Capital 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 Zimtu Capital Corp, you can compare the effects of market volatilities on FORWARD AIR and Zimtu Capital 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 Zimtu Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and Zimtu Capital.
Diversification Opportunities for FORWARD AIR and Zimtu Capital
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FORWARD and Zimtu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and Zimtu Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zimtu Capital Corp 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 Zimtu Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zimtu Capital Corp has no effect on the direction of FORWARD AIR i.e., FORWARD AIR and Zimtu Capital go up and down completely randomly.
Pair Corralation between FORWARD AIR and Zimtu Capital
Assuming the 90 days horizon FORWARD AIR P is expected to generate 0.49 times more return on investment than Zimtu Capital. However, FORWARD AIR P is 2.04 times less risky than Zimtu Capital. It trades about 0.22 of its potential returns per unit of risk. Zimtu Capital Corp is currently generating about 0.01 per unit of risk. If you would invest 1,320 in FORWARD AIR P on April 24, 2025 and sell it today you would earn a total of 1,015 from holding FORWARD AIR P or generate 76.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 84.38% |
Values | Daily Returns |
FORWARD AIR P vs. Zimtu Capital Corp
Performance |
Timeline |
FORWARD AIR P |
Zimtu Capital Corp |
Risk-Adjusted Performance
Weak
Weak | Strong |
FORWARD AIR and Zimtu Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FORWARD AIR and Zimtu Capital
The main advantage of trading using opposite FORWARD AIR and Zimtu Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD AIR position performs unexpectedly, Zimtu Capital 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 Zimtu Capital will offset losses from the drop in Zimtu Capital'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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