Correlation Between Expeditors International and Fastenal

Can any of the company-specific risk be diversified away by investing in both Expeditors International and Fastenal 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 Fastenal 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 Fastenal Company, you can compare the effects of market volatilities on Expeditors International and Fastenal 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 Fastenal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expeditors International and Fastenal.

Diversification Opportunities for Expeditors International and Fastenal

0.49

Correlation Coefficient

Expeditors International  Fastenal

Very weak diversification

The 3 months correlation between Expeditors and Fastenal is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of and Fastenal Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastenal 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 Fastenal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastenal has no effect on the direction of Expeditors International i.e., Expeditors International and Fastenal go up and down completely randomly.

Pair Corralation between Expeditors International and Fastenal

Given the investment horizon of 90 days Expeditors International is expected to generate 8.69 times less return on investment than Fastenal. In addition to that, Expeditors International is 1.2 times more volatile than Fastenal Company. It trades about 0.02 of its total potential returns per unit of risk. Fastenal Company is currently generating about 0.26 per unit of volatility. If you would invest  3,989  in Fastenal Company on May 12, 2025 and sell it today you would earn a total of  810.00  from holding Fastenal Company or generate 20.31% return on investment over 90 days.

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

Expeditors International of  vs.  Fastenal Company

Expeditors International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Expeditors International of are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Fastenal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fastenal Company are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Fastenal unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Expeditors International and Fastenal

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

The idea behind Expeditors International of and Fastenal Company 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.