Correlation Between Vinci SA and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both Vinci SA 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 Vinci SA and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinci SA ADR and Kuehne Nagel International, you can compare the effects of market volatilities on Vinci SA 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 Vinci SA with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinci SA and Kuehne Nagel.
Diversification Opportunities for Vinci SA and Kuehne Nagel
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vinci and Kuehne is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Vinci SA ADR 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 Vinci SA 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 Vinci SA ADR 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 Vinci SA i.e., Vinci SA and Kuehne Nagel go up and down completely randomly.
Pair Corralation between Vinci SA and Kuehne Nagel
Assuming the 90 days horizon Vinci SA ADR is expected to under-perform the Kuehne Nagel. But the pink sheet apears to be less risky and, when comparing its historical volatility, Vinci SA ADR is 1.3 times less risky than Kuehne Nagel. The pink sheet trades about -0.42 of its potential returns per unit of risk. The Kuehne Nagel International is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest 5,081 in Kuehne Nagel International on August 29, 2024 and sell it today you would lose (337.00) from holding Kuehne Nagel International or give up 6.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vinci SA ADR vs. Kuehne Nagel International
Performance |
| Timeline |
| Vinci SA ADR |
| Kuehne Nagel Interna |
Vinci SA and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinci SA and Kuehne Nagel
The main advantage of trading using opposite Vinci SA and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinci SA 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.| Vinci SA vs. Arcadis NV | Vinci SA vs. KBR Inc | Vinci SA vs. Orion Group Holdings | Vinci SA vs. Jacobs Solutions |
| Kuehne Nagel vs. DSV Panalpina AS | Kuehne Nagel vs. United Parcel Service | Kuehne Nagel vs. Kuehne Nagel International | Kuehne Nagel 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |