Correlation Between Expeditors International and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both Expeditors International 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 Expeditors International and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expeditors International of and Kuehne Nagel International, you can compare the effects of market volatilities on Expeditors International 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 Expeditors International with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expeditors International and Kuehne Nagel.
Diversification Opportunities for Expeditors International and Kuehne Nagel
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Expeditors and Kuehne is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of 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 Expeditors International 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 Expeditors International of 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 Expeditors International i.e., Expeditors International and Kuehne Nagel go up and down completely randomly.
Pair Corralation between Expeditors International and Kuehne Nagel
Given the investment horizon of 90 days Expeditors International is expected to generate 1.65 times less return on investment than Kuehne Nagel. But when comparing it to its historical volatility, Expeditors International of is 2.3 times less risky than Kuehne Nagel. It trades about 0.01 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 24,473 in Kuehne Nagel International on November 5, 2024 and sell it today you would lose (1,973) from holding Kuehne Nagel International or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 79.76% |
| Values | Daily Returns |
Expeditors International of vs. Kuehne Nagel International
Performance |
| Timeline |
| Expeditors International |
| Kuehne Nagel Interna |
Expeditors International and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expeditors International and Kuehne Nagel
The main advantage of trading using opposite Expeditors International and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expeditors International 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.| Expeditors International vs. GXO Logistics | Expeditors International vs. JB Hunt Transport | Expeditors International vs. CH Robinson Worldwide | Expeditors International vs. Hub Group |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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