Correlation Between Kuehne Nagel and United Parcel
Can any of the company-specific risk be diversified away by investing in both Kuehne Nagel and United Parcel 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 United Parcel 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 United Parcel Service, you can compare the effects of market volatilities on Kuehne Nagel and United Parcel 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 United Parcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne Nagel and United Parcel.
Diversification Opportunities for Kuehne Nagel and United Parcel
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kuehne and United is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and United Parcel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parcel Service 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 United Parcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parcel Service has no effect on the direction of Kuehne Nagel i.e., Kuehne Nagel and United Parcel go up and down completely randomly.
Pair Corralation between Kuehne Nagel and United Parcel
Assuming the 90 days horizon Kuehne Nagel International is expected to under-perform the United Parcel. But the pink sheet apears to be less risky and, when comparing its historical volatility, Kuehne Nagel International is 1.05 times less risky than United Parcel. The pink sheet trades about -0.31 of its potential returns per unit of risk. The United Parcel Service is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 13,369 in United Parcel Service on August 28, 2024 and sell it today you would earn a total of 385.00 from holding United Parcel Service or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuehne Nagel International vs. United Parcel Service
Performance |
| Timeline |
| Kuehne Nagel Interna |
| United Parcel Service |
Kuehne Nagel and United Parcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne Nagel and United Parcel
The main advantage of trading using opposite Kuehne Nagel and United Parcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne Nagel position performs unexpectedly, United Parcel 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 United Parcel will offset losses from the drop in United Parcel's long position.| Kuehne Nagel vs. Kuehne Nagel International | Kuehne Nagel vs. United Parcel Service | Kuehne Nagel vs. FedEx | Kuehne Nagel vs. GXO Logistics |
| United Parcel vs. Expeditors International of | United Parcel vs. Aquagold International | United Parcel vs. Morningstar Unconstrained Allocation | United Parcel vs. Thrivent High Yield |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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