Correlation Between Galenica Sante and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both Galenica Sante 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 Galenica Sante and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galenica Sante AG and Kuehne Nagel, you can compare the effects of market volatilities on Galenica Sante 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 Galenica Sante with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galenica Sante and Kuehne Nagel.
Diversification Opportunities for Galenica Sante and Kuehne Nagel
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Galenica and Kuehne is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Galenica Sante AG and Kuehne Nagel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel and Galenica Sante 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 Galenica Sante AG 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 has no effect on the direction of Galenica Sante i.e., Galenica Sante and Kuehne Nagel go up and down completely randomly.
Pair Corralation between Galenica Sante and Kuehne Nagel
Assuming the 90 days trading horizon Galenica Sante is expected to generate 4.7 times less return on investment than Kuehne Nagel. But when comparing it to its historical volatility, Galenica Sante AG is 2.28 times less risky than Kuehne Nagel. It trades about 0.09 of its potential returns per unit of risk. Kuehne Nagel is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 20,690 in Kuehne Nagel on November 28, 2024 and sell it today you would earn a total of 980.00 from holding Kuehne Nagel or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galenica Sante AG vs. Kuehne Nagel
Performance |
| Timeline |
| Galenica Sante AG |
| Kuehne Nagel |
Galenica Sante and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galenica Sante and Kuehne Nagel
The main advantage of trading using opposite Galenica Sante and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galenica Sante 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.| Galenica Sante vs. VAT Group AG | Galenica Sante vs. Baloise Holding AG | Galenica Sante vs. Swiss Life Holding | Galenica Sante vs. Helvetia Holding AG |
| Kuehne Nagel vs. Geberit AG | Kuehne Nagel vs. Givaudan SA | Kuehne Nagel vs. SGS SA | Kuehne Nagel vs. Swiss Life Holding |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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