Correlation Between GOLD ROAD and Kuehne +

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

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

Diversification Opportunities for GOLD ROAD and Kuehne +

0.01

Correlation Coefficient

GOLD ROAD  Kuehne +

Significant diversification

The 3 months correlation between GOLD and Kuehne is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding GOLD ROAD RES 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 GOLD ROAD 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 GOLD ROAD RES 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 GOLD ROAD i.e., GOLD ROAD and Kuehne + go up and down completely randomly.

Pair Corralation between GOLD ROAD and Kuehne +

Assuming the 90 days trading horizon GOLD ROAD RES is expected to generate 1.3 times more return on investment than Kuehne +. However, GOLD ROAD is 1.3 times more volatile than Kuehne Nagel International. It trades about 0.2 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about 0.01 per unit of risk. If you would invest  120.00  in GOLD ROAD RES on December 29, 2024 and sell it today you would earn a total of  48.00  from holding GOLD ROAD RES or generate 40.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

GOLD ROAD RES  vs.  Kuehne Nagel International

GOLD ROAD RES

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GOLD ROAD RES are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, GOLD ROAD exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kuehne Nagel Interna

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kuehne Nagel International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Kuehne + is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GOLD ROAD and Kuehne +

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

The idea behind GOLD ROAD RES 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..