Correlation Between NVIDIA and Kuehne +

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

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

Diversification Opportunities for NVIDIA and Kuehne +

0.06

Correlation Coefficient

NVIDIA  Kuehne +

Significant diversification

The 3 months correlation between NVIDIA and Kuehne is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA 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 NVIDIA 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 NVIDIA 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 NVIDIA i.e., NVIDIA and Kuehne + go up and down completely randomly.

Pair Corralation between NVIDIA and Kuehne +

Assuming the 90 days horizon NVIDIA is expected to under-perform the Kuehne +. In addition to that, NVIDIA is 1.85 times more volatile than Kuehne Nagel International. It trades about -0.08 of its total potential returns per unit of risk. Kuehne Nagel International is currently generating about 0.02 per unit of volatility. If you would invest  4,200  in Kuehne Nagel International on December 30, 2024 and sell it today you would earn a total of  80.00  from holding Kuehne Nagel International or generate 1.9% return on investment over 90 days.

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

NVIDIA  vs.  Kuehne Nagel International

NVIDIA

Risk-Adjusted Performance

Very Weak

Over the last 90 days NVIDIA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile 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.

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with NVIDIA and Kuehne +

The main advantage of trading using opposite NVIDIA and Kuehne + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA 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 NVIDIA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.