Correlation Between Kuehne Nagel and SUPER GROUP
Can any of the company-specific risk be diversified away by investing in both Kuehne Nagel and SUPER GROUP 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 SUPER GROUP 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 SUPER GROUP LTD, you can compare the effects of market volatilities on Kuehne Nagel and SUPER GROUP 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 SUPER GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne Nagel and SUPER GROUP.
Diversification Opportunities for Kuehne Nagel and SUPER GROUP
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuehne and SUPER is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and SUPER GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER GROUP LTD 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 SUPER GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER GROUP LTD has no effect on the direction of Kuehne Nagel i.e., Kuehne Nagel and SUPER GROUP go up and down completely randomly.
Pair Corralation between Kuehne Nagel and SUPER GROUP
Assuming the 90 days trading horizon Kuehne Nagel International is expected to generate 0.59 times more return on investment than SUPER GROUP. However, Kuehne Nagel International is 1.7 times less risky than SUPER GROUP. It trades about 0.09 of its potential returns per unit of risk. SUPER GROUP LTD is currently generating about -0.16 per unit of risk. If you would invest 4,200 in Kuehne Nagel International on November 18, 2024 and sell it today you would earn a total of 120.00 from holding Kuehne Nagel International or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuehne Nagel International vs. SUPER GROUP LTD
Performance |
| Timeline |
| Kuehne Nagel Interna |
| SUPER GROUP LTD |
Kuehne Nagel and SUPER GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne Nagel and SUPER GROUP
The main advantage of trading using opposite Kuehne Nagel and SUPER GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne Nagel position performs unexpectedly, SUPER GROUP 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 SUPER GROUP will offset losses from the drop in SUPER GROUP's long position.| Kuehne Nagel vs. ZTO EXPRESS | Kuehne Nagel vs. NIKKON HOLDINGS TD | Kuehne Nagel vs. SENKO GROUP HOLDINGS | Kuehne Nagel vs. NTG Nordic Transport |
| SUPER GROUP vs. Kuehne Nagel International | SUPER GROUP vs. ZTO EXPRESS | SUPER GROUP vs. NIKKON HOLDINGS TD | SUPER GROUP vs. SENKO GROUP HOLDINGS |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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