Correlation Between Knight Transportation and CSX
Can any of the company-specific risk be diversified away by investing in both Knight Transportation and CSX 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 Knight Transportation and CSX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knight Transportation and CSX Corporation, you can compare the effects of market volatilities on Knight Transportation and CSX 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 Knight Transportation with a short position of CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knight Transportation and CSX.
Diversification Opportunities for Knight Transportation and CSX
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Knight and CSX is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Knight Transportation and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation and Knight Transportation 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 Knight Transportation are associated (or correlated) with CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of Knight Transportation i.e., Knight Transportation and CSX go up and down completely randomly.
Pair Corralation between Knight Transportation and CSX
Considering the 90-day investment horizon Knight Transportation is expected to generate 2.33 times more return on investment than CSX. However, Knight Transportation is 2.33 times more volatile than CSX Corporation. It trades about 0.16 of its potential returns per unit of risk. CSX Corporation is currently generating about 0.01 per unit of risk. If you would invest 4,460 in Knight Transportation on October 9, 2025 and sell it today you would earn a total of 1,044 from holding Knight Transportation or generate 23.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knight Transportation vs. CSX Corp.
Performance |
| Timeline |
| Knight Transportation |
| CSX Corporation |
Knight Transportation and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knight Transportation and CSX
The main advantage of trading using opposite Knight Transportation and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knight Transportation position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| Knight Transportation vs. TFI International | Knight Transportation vs. Saia Inc | Knight Transportation vs. Federal Signal | Knight Transportation vs. Simpson Manufacturing |
| CSX vs. Norfolk Southern | CSX vs. Canadian Pacific Railway | CSX vs. Canadian National Railway | CSX vs. Illinois Tool Works |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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