Correlation Between Expeditors International and Proficient Auto

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

Diversification Opportunities for Expeditors International and Proficient Auto

0.6

Correlation Coefficient

Expeditors International  Proficient Auto

Poor diversification

The 3 months correlation between Expeditors and Proficient is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Expeditors International i.e., Expeditors International and Proficient Auto go up and down completely randomly.

Pair Corralation between Expeditors International and Proficient Auto

Given the investment horizon of 90 days Expeditors International is expected to generate 1.91 times less return on investment than Proficient Auto. But when comparing it to its historical volatility, Expeditors International of is 2.52 times less risky than Proficient Auto. It trades about 0.09 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  765.00  in Proficient Auto Logistics, on February 14, 2025 and sell it today you would earn a total of  44.00  from holding Proficient Auto Logistics, or generate 5.75% return on investment over 90 days.

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

Expeditors International of  vs.  Proficient Auto Logistics,

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.

Proficient Auto Logi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Proficient Auto Logistics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in June 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Expeditors International and Proficient Auto

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

The idea behind Expeditors International of and Proficient Auto Logistics, 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.