Correlation Between GATX and GXO Logistics
Can any of the company-specific risk be diversified away by investing in both GATX and GXO Logistics 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 GATX and GXO Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GATX Corporation and GXO Logistics, you can compare the effects of market volatilities on GATX and GXO Logistics 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 GATX with a short position of GXO Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GATX and GXO Logistics.
Diversification Opportunities for GATX and GXO Logistics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GATX and GXO is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding GATX Corp. and GXO Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GXO Logistics and GATX 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 GATX Corporation are associated (or correlated) with GXO Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GXO Logistics has no effect on the direction of GATX i.e., GATX and GXO Logistics go up and down completely randomly.
Pair Corralation between GATX and GXO Logistics
Given the investment horizon of 90 days GATX Corporation is expected to under-perform the GXO Logistics. But the stock apears to be less risky and, when comparing its historical volatility, GATX Corporation is 1.53 times less risky than GXO Logistics. The stock trades about -0.05 of its potential returns per unit of risk. The GXO Logistics is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,265 in GXO Logistics on August 29, 2025 and sell it today you would lose (215.00) from holding GXO Logistics or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GATX Corp. vs. GXO Logistics
Performance |
| Timeline |
| GATX |
| GXO Logistics |
GATX and GXO Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GATX and GXO Logistics
The main advantage of trading using opposite GATX and GXO Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GATX position performs unexpectedly, GXO Logistics 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 GXO Logistics will offset losses from the drop in GXO Logistics' long position.| GATX vs. China Education Resources | GATX vs. Kid Castle Educational | GATX vs. 51Talk Online Education | GATX vs. Alternative Investment |
| GXO Logistics vs. US GoldMining Common | GXO Logistics vs. Mako Mining Corp | GXO Logistics vs. Data3 Limited | GXO Logistics vs. Datadog |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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