Correlation Between New Perspective and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both New Perspective and Kuehne Nagel 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 New Perspective and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Perspective Fund and Kuehne Nagel International, you can compare the effects of market volatilities on New Perspective and Kuehne Nagel 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 New Perspective with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Kuehne Nagel.
Diversification Opportunities for New Perspective and Kuehne Nagel
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between New and Kuehne is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and Kuehne Nagel International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel Interna and New Perspective 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 New Perspective Fund are associated (or correlated) with Kuehne Nagel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuehne Nagel Interna has no effect on the direction of New Perspective i.e., New Perspective and Kuehne Nagel go up and down completely randomly.
Pair Corralation between New Perspective and Kuehne Nagel
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.57 times more return on investment than Kuehne Nagel. However, New Perspective Fund is 1.75 times less risky than Kuehne Nagel. It trades about 0.14 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.2 per unit of risk. If you would invest 6,302 in New Perspective Fund on October 24, 2024 and sell it today you would earn a total of 131.00 from holding New Perspective Fund or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Perspective Fund vs. Kuehne Nagel International
Performance |
| Timeline |
| New Perspective |
| Kuehne Nagel Interna |
New Perspective and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Kuehne Nagel
The main advantage of trading using opposite New Perspective and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, Kuehne Nagel 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 Kuehne Nagel will offset losses from the drop in Kuehne Nagel's long position.| New Perspective vs. Growth Fund Of | New Perspective vs. American Funds Fundamental | New Perspective vs. Investment Of America | New Perspective vs. Smallcap World Fund |
| Kuehne Nagel vs. DSV Panalpina AS | Kuehne Nagel vs. CH Robinson Worldwide | Kuehne Nagel vs. Kuehne Nagel International | Kuehne Nagel vs. DSV Panalpina AS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |