Correlation Between DSV Panalpina and Hub
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and Hub 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 DSV Panalpina and Hub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSV Panalpina AS and Hub Group, you can compare the effects of market volatilities on DSV Panalpina and Hub 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 DSV Panalpina with a short position of Hub. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and Hub.
Diversification Opportunities for DSV Panalpina and Hub
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between DSV and Hub is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Hub Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Group and DSV Panalpina 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 DSV Panalpina AS are associated (or correlated) with Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Group has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Hub go up and down completely randomly.
Pair Corralation between DSV Panalpina and Hub
Assuming the 90 days horizon DSV Panalpina AS is expected to generate 1.02 times more return on investment than Hub. However, DSV Panalpina is 1.02 times more volatile than Hub Group. It trades about 0.05 of its potential returns per unit of risk. Hub Group is currently generating about 0.05 per unit of risk. If you would invest 7,509 in DSV Panalpina AS on August 28, 2024 and sell it today you would earn a total of 2,923 from holding DSV Panalpina AS or generate 38.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSV Panalpina AS vs. Hub Group
Performance |
| Timeline |
| DSV Panalpina AS |
| Hub Group |
DSV Panalpina and Hub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and Hub
The main advantage of trading using opposite DSV Panalpina and Hub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Hub 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 Hub will offset losses from the drop in Hub's long position.| DSV Panalpina vs. Kuehne Nagel International | DSV Panalpina vs. United Parcel Service | DSV Panalpina vs. FedEx | DSV Panalpina vs. GXO Logistics |
| Hub vs. Aquagold International | Hub vs. Morningstar Unconstrained Allocation | Hub vs. Thrivent High Yield | Hub vs. Via Renewables |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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