Correlation Between Logistics Development and KARX
Can any of the company-specific risk be diversified away by investing in both Logistics Development and KARX 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 Logistics Development and KARX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logistics Development Group and KARX, you can compare the effects of market volatilities on Logistics Development and KARX 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 Logistics Development with a short position of KARX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logistics Development and KARX.
Diversification Opportunities for Logistics Development and KARX
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Logistics and KARX is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Logistics Development Group and KARX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KARX and Logistics Development 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 Logistics Development Group are associated (or correlated) with KARX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KARX has no effect on the direction of Logistics Development i.e., Logistics Development and KARX go up and down completely randomly.
Pair Corralation between Logistics Development and KARX
Assuming the 90 days horizon Logistics Development Group is expected to generate 0.38 times more return on investment than KARX. However, Logistics Development Group is 2.66 times less risky than KARX. It trades about 0.18 of its potential returns per unit of risk. KARX is currently generating about 0.05 per unit of risk. If you would invest 15.00 in Logistics Development Group on August 31, 2025 and sell it today you would earn a total of 8.00 from holding Logistics Development Group or generate 53.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
Logistics Development Group vs. KARX
Performance |
| Timeline |
| Logistics Development |
| KARX |
Logistics Development and KARX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logistics Development and KARX
The main advantage of trading using opposite Logistics Development and KARX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logistics Development position performs unexpectedly, KARX 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 KARX will offset losses from the drop in KARX's long position.| Logistics Development vs. Fuquan Capital Management | Logistics Development vs. Apollo Global Management | Logistics Development vs. BJs Restaurants | Logistics Development vs. Baristas Coffee |
| KARX vs. Network Media Group | KARX vs. Flutter Entertainment plc | KARX vs. CARsgen Therapeutics Holdings | KARX vs. Accel Entertainment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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