Correlation Between Kuehne Nagel and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both Kuehne Nagel and SINGAPORE 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 SINGAPORE 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 SINGAPORE POST, you can compare the effects of market volatilities on Kuehne Nagel and SINGAPORE 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 SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne Nagel and SINGAPORE POST.
Diversification Opportunities for Kuehne Nagel and SINGAPORE POST
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuehne and SINGAPORE is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST 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 SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of Kuehne Nagel i.e., Kuehne Nagel and SINGAPORE POST go up and down completely randomly.
Pair Corralation between Kuehne Nagel and SINGAPORE POST
Assuming the 90 days trading horizon Kuehne Nagel International is expected to generate 1.04 times more return on investment than SINGAPORE POST. However, Kuehne Nagel is 1.04 times more volatile than SINGAPORE POST. It trades about 0.09 of its potential returns per unit of risk. SINGAPORE POST is currently generating about 0.09 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuehne Nagel International vs. SINGAPORE POST
Performance |
| Timeline |
| Kuehne Nagel Interna |
| SINGAPORE POST |
Kuehne Nagel and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne Nagel and SINGAPORE POST
The main advantage of trading using opposite Kuehne Nagel and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne Nagel position performs unexpectedly, SINGAPORE 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST'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 |
| SINGAPORE POST vs. MeVis Medical Solutions | SINGAPORE POST vs. CompuGroup Medical SE | SINGAPORE POST vs. Clearside Biomedical | SINGAPORE POST vs. MEDICAL FACILITIES NEW |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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