Correlation Between Impax Asset and Proficient Auto

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

By analyzing existing cross correlation between Impax Asset Management and Proficient Auto Logistics,, you can compare the effects of market volatilities on Impax Asset 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 Impax Asset with a short position of Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impax Asset and Proficient Auto.

Diversification Opportunities for Impax Asset and Proficient Auto

0.13

Correlation Coefficient

Impax Asset  Proficient Auto

Average diversification

The 3 months correlation between Impax and Proficient is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Impax Asset Management 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 Impax Asset 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 Impax Asset Management 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 Impax Asset i.e., Impax Asset and Proficient Auto go up and down completely randomly.

Pair Corralation between Impax Asset and Proficient Auto

Assuming the 90 days horizon Impax Asset Management is expected to generate 0.39 times more return on investment than Proficient Auto. However, Impax Asset Management is 2.57 times less risky than Proficient Auto. It trades about -0.07 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about -0.03 per unit of risk. If you would invest  268.00  in Impax Asset Management on July 16, 2025 and sell it today you would lose (24.00) from holding Impax Asset Management or give up 8.96% of portfolio value over 90 days.

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

Impax Asset Management  vs.  Proficient Auto Logistics,

Impax Asset Management

Risk-Adjusted Performance

Weakest

Over the last 90 days Impax Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Proficient Auto Logi

Risk-Adjusted Performance

Weakest

Over the last 90 days Proficient Auto Logistics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Impax Asset and Proficient Auto

The main advantage of trading using opposite Impax Asset and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impax Asset 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 Impax Asset Management 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.

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.