Correlation Between Kuehne Nagel and DSV Panalpina
Can any of the company-specific risk be diversified away by investing in both Kuehne Nagel and DSV Panalpina 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 Nagel and DSV Panalpina 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 DSV Panalpina AS, you can compare the effects of market volatilities on Kuehne Nagel and DSV Panalpina 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 Nagel with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne Nagel and DSV Panalpina.
Diversification Opportunities for Kuehne Nagel and DSV Panalpina
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuehne and DSV is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and DSV Panalpina AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSV Panalpina AS and Kuehne Nagel 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 DSV Panalpina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSV Panalpina AS has no effect on the direction of Kuehne Nagel i.e., Kuehne Nagel and DSV Panalpina go up and down completely randomly.
Pair Corralation between Kuehne Nagel and DSV Panalpina
Assuming the 90 days horizon Kuehne Nagel International is expected to generate 1.05 times more return on investment than DSV Panalpina. However, Kuehne Nagel is 1.05 times more volatile than DSV Panalpina AS. It trades about -0.02 of its potential returns per unit of risk. DSV Panalpina AS is currently generating about -0.15 per unit of risk. If you would invest 22,703 in Kuehne Nagel International on November 4, 2024 and sell it today you would lose (203.00) from holding Kuehne Nagel International or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Kuehne Nagel International vs. DSV Panalpina AS
Performance |
| Timeline |
| Kuehne Nagel Interna |
| DSV Panalpina AS |
Kuehne Nagel and DSV Panalpina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne Nagel and DSV Panalpina
The main advantage of trading using opposite Kuehne Nagel and DSV Panalpina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne Nagel position performs unexpectedly, DSV Panalpina 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 DSV Panalpina will offset losses from the drop in DSV Panalpina's long position.| Kuehne Nagel vs. DSV Panalpina AS | Kuehne Nagel vs. CH Robinson Worldwide | Kuehne Nagel vs. Kuehne Nagel International | Kuehne Nagel vs. DSV Panalpina AS |
| DSV Panalpina vs. Kuehne Nagel International | DSV Panalpina vs. Kuehne Nagel International | DSV Panalpina vs. Deutsche Post AG | DSV Panalpina vs. CH Robinson Worldwide |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |