Correlation Between Kuehne + and SENKO GROUP

Can any of the company-specific risk be diversified away by investing in both Kuehne + and SENKO GROUP 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 + and SENKO GROUP 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 SENKO GROUP HOLDINGS, you can compare the effects of market volatilities on Kuehne + and SENKO GROUP 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 + with a short position of SENKO GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne + and SENKO GROUP.

Diversification Opportunities for Kuehne + and SENKO GROUP

-0.79

Correlation Coefficient

Kuehne +  SENKO GROUP

Pay attention - limited upside

The 3 months correlation between Kuehne and SENKO is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and SENKO GROUP HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENKO GROUP HOLDINGS and Kuehne + 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 SENKO GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENKO GROUP HOLDINGS has no effect on the direction of Kuehne + i.e., Kuehne + and SENKO GROUP go up and down completely randomly.

Pair Corralation between Kuehne + and SENKO GROUP

Assuming the 90 days trading horizon Kuehne Nagel International is expected to under-perform the SENKO GROUP. In addition to that, Kuehne + is 1.53 times more volatile than SENKO GROUP HOLDINGS. It trades about -0.06 of its total potential returns per unit of risk. SENKO GROUP HOLDINGS is currently generating about 0.18 per unit of volatility. If you would invest  645.00  in SENKO GROUP HOLDINGS on October 13, 2024 and sell it today you would earn a total of  240.00  from holding SENKO GROUP HOLDINGS or generate 37.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.31%
Values	Daily Returns

Kuehne Nagel International  vs.  SENKO GROUP HOLDINGS

Kuehne Nagel Interna

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kuehne Nagel International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Kuehne + is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SENKO GROUP HOLDINGS

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SENKO GROUP HOLDINGS are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SENKO GROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Kuehne + and SENKO GROUP

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

The idea behind Kuehne Nagel International and SENKO GROUP HOLDINGS 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.