Correlation Between Kuehne + and CH Robinson
Can any of the company-specific risk be diversified away by investing in both Kuehne + and CH Robinson 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 Kuehne + and CH Robinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuehne Nagel International and CH Robinson Worldwide, you can compare the effects of market volatilities on Kuehne + and CH Robinson 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 Kuehne + with a short position of CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne + and CH Robinson.
Diversification Opportunities for Kuehne + and CH Robinson
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kuehne and CHRW is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide and Kuehne + 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 Kuehne Nagel International are associated (or correlated) with CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of Kuehne + i.e., Kuehne + and CH Robinson go up and down completely randomly.
Pair Corralation between Kuehne + and CH Robinson
Assuming the 90 days horizon Kuehne Nagel International is expected to under-perform the CH Robinson. In addition to that, Kuehne + is 1.1 times more volatile than CH Robinson Worldwide. It trades about -0.03 of its total potential returns per unit of risk. CH Robinson Worldwide is currently generating about 0.07 per unit of volatility. If you would invest 8,005 in CH Robinson Worldwide on August 24, 2024 and sell it today you would earn a total of 2,849 from holding CH Robinson Worldwide or generate 35.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 78.4% |
| Values | Daily Returns |
Kuehne Nagel International vs. CH Robinson Worldwide
Performance |
| Timeline |
| Kuehne Nagel Interna |
| CH Robinson Worldwide |
Kuehne + and CH Robinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne + and CH Robinson
The main advantage of trading using opposite Kuehne + and CH Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne + position performs unexpectedly, CH Robinson 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 CH Robinson will offset losses from the drop in CH Robinson's long position.| Kuehne + vs. DSV Panalpina AS | Kuehne + vs. CH Robinson Worldwide | Kuehne + vs. Kuehne Nagel International | Kuehne + vs. DSV Panalpina AS |
| CH Robinson vs. JB Hunt Transport | CH Robinson vs. Landstar System | CH Robinson vs. Hub Group | CH Robinson vs. Forward Air |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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