Correlation Between Forward Air and BlueLinx Holdings
Can any of the company-specific risk be diversified away by investing in both Forward Air and BlueLinx Holdings 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 Forward Air and BlueLinx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forward Air and BlueLinx Holdings, you can compare the effects of market volatilities on Forward Air and BlueLinx Holdings 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 Forward Air with a short position of BlueLinx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forward Air and BlueLinx Holdings.
Diversification Opportunities for Forward Air and BlueLinx Holdings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Forward and BlueLinx is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Forward Air and BlueLinx Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueLinx Holdings and Forward Air 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 Forward Air are associated (or correlated) with BlueLinx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueLinx Holdings has no effect on the direction of Forward Air i.e., Forward Air and BlueLinx Holdings go up and down completely randomly.
Pair Corralation between Forward Air and BlueLinx Holdings
Given the investment horizon of 90 days Forward Air is expected to under-perform the BlueLinx Holdings. In addition to that, Forward Air is 1.32 times more volatile than BlueLinx Holdings. It trades about -0.22 of its total potential returns per unit of risk. BlueLinx Holdings is currently generating about -0.05 per unit of volatility. If you would invest 8,005 in BlueLinx Holdings on July 25, 2025 and sell it today you would lose (827.00) from holding BlueLinx Holdings or give up 10.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forward Air vs. BlueLinx Holdings
Performance |
| Timeline |
| Forward Air |
| BlueLinx Holdings |
Forward Air and BlueLinx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forward Air and BlueLinx Holdings
The main advantage of trading using opposite Forward Air and BlueLinx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forward Air position performs unexpectedly, BlueLinx Holdings 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 BlueLinx Holdings will offset losses from the drop in BlueLinx Holdings' long position.| Forward Air vs. FTAI Infrastructure | Forward Air vs. Quanex Building Products | Forward Air vs. Compass Diversified Holdings | Forward Air vs. T1 Energy |
| BlueLinx Holdings vs. Quanex Building Products | BlueLinx Holdings vs. Compass Diversified Holdings | BlueLinx Holdings vs. Aspen Aerogels | BlueLinx Holdings vs. Cresud SACIF y |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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