Correlation Between CH Robinson and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both CH Robinson 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 CH Robinson and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CH Robinson Worldwide and Kuehne Nagel International, you can compare the effects of market volatilities on CH Robinson 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 CH Robinson with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and Kuehne Nagel.
Diversification Opportunities for CH Robinson and Kuehne Nagel
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHRW and Kuehne is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide 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 CH Robinson 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 CH Robinson Worldwide 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 CH Robinson i.e., CH Robinson and Kuehne Nagel go up and down completely randomly.
Pair Corralation between CH Robinson and Kuehne Nagel
Given the investment horizon of 90 days CH Robinson Worldwide is expected to generate 1.43 times more return on investment than Kuehne Nagel. However, CH Robinson is 1.43 times more volatile than Kuehne Nagel International. It trades about -0.03 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.31 per unit of risk. If you would invest 10,894 in CH Robinson Worldwide on August 28, 2024 and sell it today you would lose (140.00) from holding CH Robinson Worldwide or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CH Robinson Worldwide vs. Kuehne Nagel International
Performance |
| Timeline |
| CH Robinson Worldwide |
| Kuehne Nagel Interna |
CH Robinson and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Robinson and Kuehne Nagel
The main advantage of trading using opposite CH Robinson and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson 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.| CH Robinson vs. JB Hunt Transport | CH Robinson vs. Landstar System | CH Robinson vs. Hub Group | CH Robinson vs. Forward Air |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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