Correlation Between United Parcel and Kuehne +
Can any of the company-specific risk be diversified away by investing in both United Parcel and Kuehne + 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 United Parcel and Kuehne + into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Parcel Service and Kuehne Nagel International, you can compare the effects of market volatilities on United Parcel and Kuehne + 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 United Parcel with a short position of Kuehne +. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Parcel and Kuehne +.
Diversification Opportunities for United Parcel and Kuehne +
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Kuehne is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding United Parcel Service 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 United Parcel 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 United Parcel Service are associated (or correlated) with Kuehne +. 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 United Parcel i.e., United Parcel and Kuehne + go up and down completely randomly.
Pair Corralation between United Parcel and Kuehne +
Considering the 90-day investment horizon United Parcel Service is expected to generate 0.77 times more return on investment than Kuehne +. However, United Parcel Service is 1.3 times less risky than Kuehne +. It trades about -0.01 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.03 per unit of risk. If you would invest 14,380 in United Parcel Service on August 24, 2024 and sell it today you would lose (1,243) from holding United Parcel Service or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 78.4% |
| Values | Daily Returns |
United Parcel Service vs. Kuehne Nagel International
Performance |
| Timeline |
| United Parcel Service |
| Kuehne Nagel Interna |
United Parcel and Kuehne + Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Parcel and Kuehne +
The main advantage of trading using opposite United Parcel and Kuehne + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Parcel position performs unexpectedly, Kuehne + 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 + will offset losses from the drop in Kuehne +'s long position.| United Parcel vs. GXO Logistics | United Parcel vs. JB Hunt Transport | United Parcel vs. Expeditors International of | United Parcel vs. CH Robinson Worldwide |
| Kuehne + vs. DSV Panalpina AS | Kuehne + vs. CH Robinson Worldwide | Kuehne + vs. Kuehne Nagel International | Kuehne + vs. DSV Panalpina AS |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |