Correlation Between Kuehne Nagel and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Kuehne Nagel and Deutsche Post 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 Deutsche Post 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 Deutsche Post AG, you can compare the effects of market volatilities on Kuehne Nagel and Deutsche Post 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 Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne Nagel and Deutsche Post.
Diversification Opportunities for Kuehne Nagel and Deutsche Post
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuehne and Deutsche is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG 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 Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Kuehne Nagel i.e., Kuehne Nagel and Deutsche Post go up and down completely randomly.
Pair Corralation between Kuehne Nagel and Deutsche Post
Assuming the 90 days horizon Kuehne Nagel International is expected to under-perform the Deutsche Post. But the pink sheet apears to be less risky and, when comparing its historical volatility, Kuehne Nagel International is 1.83 times less risky than Deutsche Post. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Deutsche Post AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,490 in Deutsche Post AG on November 3, 2024 and sell it today you would earn a total of 110.00 from holding Deutsche Post AG or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuehne Nagel International vs. Deutsche Post AG
Performance |
| Timeline |
| Kuehne Nagel Interna |
| Deutsche Post AG |
Kuehne Nagel and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne Nagel and Deutsche Post
The main advantage of trading using opposite Kuehne Nagel and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne Nagel position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's long position.| Kuehne Nagel vs. DSV Panalpina AS | Kuehne Nagel vs. United Parcel Service | Kuehne Nagel vs. Kuehne Nagel International | Kuehne Nagel vs. DSV Panalpina AS |
| Deutsche Post vs. Kuehne Nagel International | Deutsche Post vs. Kuehne Nagel International | Deutsche Post vs. DSV Panalpina AS | Deutsche Post vs. DSV Panalpina AS |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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