Correlation Between Österreichische Post and Kuehne Nagel

Can any of the company-specific risk be diversified away by investing in both Österreichische Post 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 Österreichische Post and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between sterreichische Post AG and Kuehne Nagel International, you can compare the effects of market volatilities on Österreichische Post 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 Österreichische Post with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Österreichische Post and Kuehne Nagel.

Diversification Opportunities for Österreichische Post and Kuehne Nagel

0.59

Correlation Coefficient

Österreichische Post  Kuehne Nagel

Very weak diversification

The 3 months correlation between Österreichische and Kuehne is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding sterreichische Post 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 Österreichische Post 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 sterreichische Post 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 Österreichische Post i.e., Österreichische Post and Kuehne Nagel go up and down completely randomly.

Pair Corralation between Österreichische Post and Kuehne Nagel

Assuming the 90 days horizon sterreichische Post AG is expected to generate 1.43 times more return on investment than Kuehne Nagel. However, Österreichische Post is 1.43 times more volatile than Kuehne Nagel International. It trades about 0.17 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about 0.18 per unit of risk. If you would invest  2,818  in sterreichische Post AG on March 14, 2024 and sell it today you would earn a total of  577.00  from holding sterreichische Post AG or generate 20.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

sterreichische Post AG  vs.  Kuehne Nagel International

Österreichische Post

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in sterreichische Post AG are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Österreichische Post reported solid returns over the last few months and may actually be approaching a breakup point.

Kuehne Nagel Interna

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kuehne Nagel International are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Kuehne Nagel showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Österreichische Post and Kuehne Nagel

The main advantage of trading using opposite Österreichische Post and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Österreichische Post 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.

The idea behind sterreichische Post AG and Kuehne Nagel International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.