Correlation Between Kuehne Nagel and Deutsche Post

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

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

Diversification Opportunities for Kuehne Nagel and Deutsche Post

0.63

Correlation Coefficient

Kuehne Nagel  Deutsche Post

Poor diversification

The 3 months correlation between Kuehne and Deutsche is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG and Kuehne Nagel 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 Kuehne Nagel International are associated (or correlated) with Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Kuehne Nagel i.e., Kuehne Nagel and Deutsche Post go up and down completely randomly.

Pair Corralation between Kuehne Nagel and Deutsche Post

Assuming the 90 days horizon Kuehne Nagel is expected to generate 5.33 times less return on investment than Deutsche Post. But when comparing it to its historical volatility, Kuehne Nagel International is 1.54 times less risky than Deutsche Post. It trades about 0.02 of its potential returns per unit of risk. Deutsche Post AG is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,634  in Deutsche Post AG on November 29, 2024 and sell it today you would earn a total of  296.00  from holding Deutsche Post AG or generate 8.15% return on investment over 90 days.

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

Kuehne Nagel International  vs.  Deutsche Post AG

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. In spite of fairly strong technical and fundamental indicators, Kuehne Nagel is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Deutsche Post AG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Post AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Deutsche Post may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Kuehne Nagel and Deutsche Post

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

The idea behind Kuehne Nagel International and Deutsche Post AG 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 CEOs Directory module to screen CEOs from public companies around the world.