Correlation Between Universal Logistics and Daseke

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

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

Diversification Opportunities for Universal Logistics and Daseke

0.05

Correlation Coefficient

Universal Logistics  Daseke

Significant diversification

The 3 months correlation between Universal and Daseke is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Universal Logistics Holdings and Daseke Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daseke Inc and Universal Logistics 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 Universal Logistics Holdings are associated (or correlated) with Daseke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daseke Inc has no effect on the direction of Universal Logistics i.e., Universal Logistics and Daseke go up and down completely randomly.

Pair Corralation between Universal Logistics and Daseke

If you would invest  4,119  in Universal Logistics Holdings on September 5, 2024 and sell it today you would earn a total of  861.00  from holding Universal Logistics Holdings or generate 20.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Universal Logistics Holdings  vs.  Daseke Inc

Universal Logistics

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Universal Logistics Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Universal Logistics demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Daseke Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Universal Logistics and Daseke

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

The idea behind Universal Logistics Holdings and Daseke Inc 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.