Correlation Between XPO Logistics and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both XPO Logistics 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 XPO Logistics and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XPO Logistics and Kuehne Nagel International, you can compare the effects of market volatilities on XPO Logistics 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 XPO Logistics with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of XPO Logistics and Kuehne Nagel.
Diversification Opportunities for XPO Logistics and Kuehne Nagel
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XPO and Kuehne is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding XPO Logistics 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 XPO Logistics 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 XPO Logistics 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 XPO Logistics i.e., XPO Logistics and Kuehne Nagel go up and down completely randomly.
Pair Corralation between XPO Logistics and Kuehne Nagel
Considering the 90-day investment horizon XPO Logistics is expected to generate 1.22 times more return on investment than Kuehne Nagel. However, XPO Logistics is 1.22 times more volatile than Kuehne Nagel International. It trades about 0.1 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.2 per unit of risk. If you would invest 13,292 in XPO Logistics on October 24, 2024 and sell it today you would earn a total of 441.50 from holding XPO Logistics or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
XPO Logistics vs. Kuehne Nagel International
Performance |
| Timeline |
| XPO Logistics |
| Kuehne Nagel Interna |
XPO Logistics and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XPO Logistics and Kuehne Nagel
The main advantage of trading using opposite XPO Logistics and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XPO Logistics 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.| XPO Logistics vs. Knight Transportation | XPO Logistics vs. Schneider National | XPO Logistics vs. Heartland Express | XPO Logistics vs. Saia Inc |
| Kuehne Nagel vs. DSV Panalpina AS | Kuehne Nagel vs. CH Robinson Worldwide | 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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