Correlation Between Graubuendner Kantonalbank and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both Graubuendner Kantonalbank 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 Graubuendner Kantonalbank and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graubuendner Kantonalbank and Kuehne Nagel, you can compare the effects of market volatilities on Graubuendner Kantonalbank 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 Graubuendner Kantonalbank with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graubuendner Kantonalbank and Kuehne Nagel.
Diversification Opportunities for Graubuendner Kantonalbank and Kuehne Nagel
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Graubuendner and Kuehne is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Graubuendner Kantonalbank and Kuehne Nagel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel and Graubuendner Kantonalbank 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 Graubuendner Kantonalbank 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 Graubuendner Kantonalbank i.e., Graubuendner Kantonalbank and Kuehne Nagel go up and down completely randomly.
Pair Corralation between Graubuendner Kantonalbank and Kuehne Nagel
Assuming the 90 days trading horizon Graubuendner Kantonalbank is expected to generate 0.48 times more return on investment than Kuehne Nagel. However, Graubuendner Kantonalbank is 2.08 times less risky than Kuehne Nagel. It trades about -0.04 of its potential returns per unit of risk. Kuehne Nagel is currently generating about -0.11 per unit of risk. If you would invest 179,000 in Graubuendner Kantonalbank on August 30, 2024 and sell it today you would lose (6,500) from holding Graubuendner Kantonalbank or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graubuendner Kantonalbank vs. Kuehne Nagel
Performance |
| Timeline |
| Graubuendner Kantonalbank |
| Kuehne Nagel |
Graubuendner Kantonalbank and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graubuendner Kantonalbank and Kuehne Nagel
The main advantage of trading using opposite Graubuendner Kantonalbank and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graubuendner Kantonalbank 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.The idea behind Graubuendner Kantonalbank and Kuehne Nagel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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