Correlation Between Fortress Transportation and CSL

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

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

Diversification Opportunities for Fortress Transportation and CSL

-0.04

Correlation Coefficient

Fortress Transportation  CSL

Good diversification

The 3 months correlation between Fortress and CSL is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Transportation and and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL and Fortress Transportation 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 Fortress Transportation and are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Fortress Transportation i.e., Fortress Transportation and CSL go up and down completely randomly.

Pair Corralation between Fortress Transportation and CSL

Assuming the 90 days horizon Fortress Transportation and is expected to generate 0.15 times more return on investment than CSL. However, Fortress Transportation and is 6.6 times less risky than CSL. It trades about 0.05 of its potential returns per unit of risk. CSL is currently generating about -0.07 per unit of risk. If you would invest  2,504  in Fortress Transportation and on September 8, 2025 and sell it today you would earn a total of  28.00  from holding Fortress Transportation and or generate 1.12% return on investment over 90 days.

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

Fortress Transportation and  vs.  CSL

Fortress Transportation

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Fortress Transportation and are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Fortress Transportation is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

CSL

Risk-Adjusted Performance

Weakest

Over the last 90 days CSL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Fortress Transportation and CSL

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

The idea behind Fortress Transportation and and CSL 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.

Check out your portfolio center.

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 Transaction History module to view history of all your transactions and understand their impact on performance.