Correlation Between CH Robinson and RWGV

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

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

Diversification Opportunities for CH Robinson and RWGV

Pay attention - limited upside

The 3 months correlation between CHRW and RWGV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide and RWGV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RWGV and CH Robinson 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 CH Robinson Worldwide are associated (or correlated) with RWGV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RWGV has no effect on the direction of CH Robinson i.e., CH Robinson and RWGV go up and down completely randomly.

Pair Corralation between CH Robinson and RWGV

If you would invest  8,570  in CH Robinson Worldwide on September 9, 2023 and sell it today you would earn a total of  32.00  from holding CH Robinson Worldwide or generate 0.37% return on investment over 90 days.

CH Robinson Worldwide  vs.  RWGV

CH Robinson Worldwide

CHRW Performance

0 of 100

Over the last 90 days CH Robinson Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CH Robinson is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

RWGV

RWGV Performance

0 of 100

Over the last 90 days RWGV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, RWGV is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with CH Robinson and RWGV

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

The idea behind CH Robinson Worldwide and RWGV 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.