Correlation Between Expeditors International and BingEx

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

By analyzing existing cross correlation between Expeditors International of and BingEx, you can compare the effects of market volatilities on Expeditors International and BingEx 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 Expeditors International with a short position of BingEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expeditors International and BingEx.

Diversification Opportunities for Expeditors International and BingEx

-0.37

Correlation Coefficient

Expeditors International  BingEx

Very good diversification

The 3 months correlation between Expeditors and BingEx is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of and BingEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BingEx and Expeditors International 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 Expeditors International of are associated (or correlated) with BingEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BingEx has no effect on the direction of Expeditors International i.e., Expeditors International and BingEx go up and down completely randomly.

Pair Corralation between Expeditors International and BingEx

Given the investment horizon of 90 days Expeditors International of is expected to generate 0.16 times more return on investment than BingEx. However, Expeditors International of is 6.13 times less risky than BingEx. It trades about 0.01 of its potential returns per unit of risk. BingEx is currently generating about -0.16 per unit of risk. If you would invest  12,006  in Expeditors International of on September 13, 2024 and sell it today you would earn a total of  34.00  from holding Expeditors International of or generate 0.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	77.78%
Values	Daily Returns

Expeditors International of  vs.  BingEx

Expeditors International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Expeditors International of has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Expeditors International is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

BingEx

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BingEx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Expeditors International and BingEx

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

The idea behind Expeditors International of and BingEx 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.