Correlation Between Hypothekarbank Lenzburg and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hypothekarbank Lenzburg AG and Kuehne Nagel, you can compare the effects of market volatilities on Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hypothekarbank Lenzburg and Kuehne Nagel.
Diversification Opportunities for Hypothekarbank Lenzburg and Kuehne Nagel
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hypothekarbank and Kuehne is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hypothekarbank Lenzburg AG and Kuehne Nagel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel and Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg i.e., Hypothekarbank Lenzburg and Kuehne Nagel go up and down completely randomly.
Pair Corralation between Hypothekarbank Lenzburg and Kuehne Nagel
Assuming the 90 days trading horizon Hypothekarbank Lenzburg AG is expected to generate 0.67 times more return on investment than Kuehne Nagel. However, Hypothekarbank Lenzburg AG is 1.5 times less risky than Kuehne Nagel. It trades about -0.18 of its potential returns per unit of risk. Kuehne Nagel is currently generating about -0.18 per unit of risk. If you would invest 406,000 in Hypothekarbank Lenzburg AG on August 30, 2024 and sell it today you would lose (12,000) from holding Hypothekarbank Lenzburg AG or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hypothekarbank Lenzburg AG vs. Kuehne Nagel
Performance |
| Timeline |
| Hypothekarbank Lenzburg |
| Kuehne Nagel |
Hypothekarbank Lenzburg and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hypothekarbank Lenzburg and Kuehne Nagel
The main advantage of trading using opposite Hypothekarbank Lenzburg and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hypothekarbank Lenzburg 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.| Hypothekarbank Lenzburg vs. Luzerner Kantonalbank AG | Hypothekarbank Lenzburg vs. Graubuendner Kantonalbank | Hypothekarbank Lenzburg vs. CPH Chemie und | Hypothekarbank Lenzburg vs. Berner Kantonalbank AG |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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