Correlation Between Chocoladefabriken and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Kuehne Nagel 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 Chocoladefabriken and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and Kuehne Nagel, you can compare the effects of market volatilities on Chocoladefabriken and Kuehne Nagel 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 Chocoladefabriken with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Kuehne Nagel.
Diversification Opportunities for Chocoladefabriken and Kuehne Nagel
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chocoladefabriken and Kuehne is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Kuehne Nagel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli are associated (or correlated) with Kuehne Nagel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuehne Nagel has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Kuehne Nagel go up and down completely randomly.
Pair Corralation between Chocoladefabriken and Kuehne Nagel
Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to generate 0.92 times more return on investment than Kuehne Nagel. However, Chocoladefabriken Lindt Spruengli is 1.09 times less risky than Kuehne Nagel. It trades about -0.02 of its potential returns per unit of risk. Kuehne Nagel is currently generating about -0.11 per unit of risk. If you would invest 1,046,000 in Chocoladefabriken Lindt Spruengli on August 30, 2024 and sell it today you would lose (38,000) from holding Chocoladefabriken Lindt Spruengli or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chocoladefabriken Lindt Spruen vs. Kuehne Nagel
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| Kuehne Nagel |
Chocoladefabriken and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and Kuehne Nagel
The main advantage of trading using opposite Chocoladefabriken and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Kuehne Nagel 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 Kuehne Nagel will offset losses from the drop in Kuehne Nagel's long position.| Chocoladefabriken vs. Chocoladefabriken Lindt Spruengli | Chocoladefabriken vs. Barry Callebaut AG | Chocoladefabriken vs. Givaudan SA | Chocoladefabriken vs. Geberit AG |
| Kuehne Nagel vs. Geberit AG | Kuehne Nagel vs. Givaudan SA | Kuehne Nagel vs. SGS SA | Kuehne Nagel vs. Swiss Life Holding |
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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