Correlation Between Talanx AG and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both Talanx AG 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 Talanx AG and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and Kuehne Nagel International, you can compare the effects of market volatilities on Talanx AG 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 Talanx AG with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and Kuehne Nagel.
Diversification Opportunities for Talanx AG and Kuehne Nagel
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Talanx and Kuehne is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and Kuehne Nagel International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel Interna and Talanx AG 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 Talanx AG 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 Interna has no effect on the direction of Talanx AG i.e., Talanx AG and Kuehne Nagel go up and down completely randomly.
Pair Corralation between Talanx AG and Kuehne Nagel
Assuming the 90 days horizon Talanx AG is expected to generate 0.88 times more return on investment than Kuehne Nagel. However, Talanx AG is 1.14 times less risky than Kuehne Nagel. It trades about 0.48 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.08 per unit of risk. 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 |
Talanx AG vs. Kuehne Nagel International
Performance |
| Timeline |
| Talanx AG |
| Kuehne Nagel Interna |
Talanx AG and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and Kuehne Nagel
The main advantage of trading using opposite Talanx AG and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG 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.| Talanx AG vs. SLR Investment Corp | Talanx AG vs. PennantPark Investment | Talanx AG vs. CVS Health | Talanx AG vs. CeoTronics AG |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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