Correlation Between Kuehne Nagel and Talanx AG
Can any of the company-specific risk be diversified away by investing in both Kuehne Nagel and Talanx AG 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 Talanx AG 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 Talanx AG, you can compare the effects of market volatilities on Kuehne Nagel and Talanx AG 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 Talanx AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne Nagel and Talanx AG.
Diversification Opportunities for Kuehne Nagel and Talanx AG
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kuehne and Talanx is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and Talanx AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talanx 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 Talanx AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talanx AG has no effect on the direction of Kuehne Nagel i.e., Kuehne Nagel and Talanx AG go up and down completely randomly.
Pair Corralation between Kuehne Nagel and Talanx AG
Assuming the 90 days trading horizon Kuehne Nagel International is expected to under-perform the Talanx AG. In addition to that, Kuehne Nagel is 1.14 times more volatile than Talanx AG. It trades about -0.08 of its total potential returns per unit of risk. Talanx AG is currently generating about 0.48 per unit of volatility. If you would invest 7,050 in Talanx AG on September 5, 2024 and sell it today you would earn a total of 995.00 from holding Talanx AG or generate 14.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuehne Nagel International vs. Talanx AG
Performance |
| Timeline |
| Kuehne Nagel Interna |
| Talanx AG |
Kuehne Nagel and Talanx AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne Nagel and Talanx AG
The main advantage of trading using opposite Kuehne Nagel and Talanx AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne Nagel position performs unexpectedly, Talanx AG 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 Talanx AG will offset losses from the drop in Talanx AG's long position.| Kuehne Nagel vs. Ultra Clean Holdings | Kuehne Nagel vs. ULTRA CLEAN HLDGS | Kuehne Nagel vs. Sunny Optical Technology | Kuehne Nagel vs. Casio Computer CoLtd |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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