Correlation Between Globavend Holdings and Expeditors International

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

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

Diversification Opportunities for Globavend Holdings and Expeditors International

0.28

Correlation Coefficient

Globavend Holdings  Expeditors International

Modest diversification

The 3 months correlation between Globavend and Expeditors is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Globavend Holdings Limited and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International and Globavend Holdings 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 Globavend Holdings Limited are associated (or correlated) with Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Globavend Holdings i.e., Globavend Holdings and Expeditors International go up and down completely randomly.

Pair Corralation between Globavend Holdings and Expeditors International

Considering the 90-day investment horizon Globavend Holdings Limited is expected to generate 4.97 times more return on investment than Expeditors International. However, Globavend Holdings is 4.97 times more volatile than Expeditors International of. It trades about 0.01 of its potential returns per unit of risk. Expeditors International of is currently generating about 0.01 per unit of risk. If you would invest  72.00  in Globavend Holdings Limited on September 13, 2024 and sell it today you would lose (3.00) from holding Globavend Holdings Limited or give up 4.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Globavend Holdings Limited  vs.  Expeditors International of

Globavend Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Globavend Holdings Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Globavend Holdings is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

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.

Pair Trading with Globavend Holdings and Expeditors International

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

The idea behind Globavend Holdings Limited and Expeditors International of 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.