Correlation Between Platinum Investment and FORWARD AIR

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

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

Diversification Opportunities for Platinum Investment and FORWARD AIR

-0.33

Correlation Coefficient

Platinum Investment  FORWARD AIR

Very good diversification

The 3 months correlation between Platinum and FORWARD is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P and Platinum Investment 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 Platinum Investment Management are associated (or correlated) with FORWARD AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORWARD AIR P has no effect on the direction of Platinum Investment i.e., Platinum Investment and FORWARD AIR go up and down completely randomly.

Pair Corralation between Platinum Investment and FORWARD AIR

Assuming the 90 days horizon Platinum Investment is expected to generate 2.87 times less return on investment than FORWARD AIR. But when comparing it to its historical volatility, Platinum Investment Management is 1.01 times less risky than FORWARD AIR. It trades about 0.08 of its potential returns per unit of risk. FORWARD AIR P is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,330  in FORWARD AIR P on April 23, 2025 and sell it today you would earn a total of  985.00  from holding FORWARD AIR P or generate 74.06% return on investment over 90 days.

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

Platinum Investment Management  vs.  FORWARD AIR P

Platinum Investment

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Platinum Investment Management are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Platinum Investment reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Platinum Investment and FORWARD AIR

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

The idea behind Platinum Investment Management and FORWARD AIR P 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.