Correlation Between International Consolidated and Kerry Logistics

Can any of the company-specific risk be diversified away by investing in both International Consolidated and Kerry Logistics 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 International Consolidated and Kerry Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between International Consolidated Companies and Kerry Logistics Network, you can compare the effects of market volatilities on International Consolidated and Kerry Logistics 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 International Consolidated with a short position of Kerry Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and Kerry Logistics.

Diversification Opportunities for International Consolidated and Kerry Logistics

-0.28

Correlation Coefficient

International Consolidated  Kerry Logistics

Very good diversification

The 3 months correlation between International and Kerry is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Com and Kerry Logistics Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerry Logistics Network and International Consolidated 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 International Consolidated Companies are associated (or correlated) with Kerry Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerry Logistics Network has no effect on the direction of International Consolidated i.e., International Consolidated and Kerry Logistics go up and down completely randomly.

Pair Corralation between International Consolidated and Kerry Logistics

Given the investment horizon of 90 days International Consolidated Companies is expected to generate 17.66 times more return on investment than Kerry Logistics. However, International Consolidated is 17.66 times more volatile than Kerry Logistics Network. It trades about 0.17 of its potential returns per unit of risk. Kerry Logistics Network is currently generating about -0.12 per unit of risk. If you would invest  3.00  in International Consolidated Companies on December 23, 2024 and sell it today you would earn a total of  0.00  from holding International Consolidated Companies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	92.31%
Values	Daily Returns

International Consolidated Com  vs.  Kerry Logistics Network

International Consolidated

Risk-Adjusted Performance

Good

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

Kerry Logistics Network

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kerry Logistics Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with International Consolidated and Kerry Logistics

The main advantage of trading using opposite International Consolidated and Kerry Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated position performs unexpectedly, Kerry Logistics 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 Kerry Logistics will offset losses from the drop in Kerry Logistics' long position.

The idea behind International Consolidated Companies and Kerry Logistics Network 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 Global Correlations module to find global opportunities by holding instruments from different markets.