Correlation Between Freightos Limited and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both Freightos Limited and Kuehne Nagel 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 Freightos Limited and Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freightos Limited Ordinary and Kuehne Nagel International, you can compare the effects of market volatilities on Freightos Limited and Kuehne Nagel 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 Freightos Limited with a short position of Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freightos Limited and Kuehne Nagel.
Diversification Opportunities for Freightos Limited and Kuehne Nagel
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Freightos and Kuehne is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Freightos Limited Ordinary 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 Freightos Limited 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 Freightos Limited Ordinary are associated (or correlated) with Kuehne Nagel. 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 Freightos Limited i.e., Freightos Limited and Kuehne Nagel go up and down completely randomly.
Pair Corralation between Freightos Limited and Kuehne Nagel
Given the investment horizon of 90 days Freightos Limited Ordinary is expected to generate 5.86 times more return on investment than Kuehne Nagel. However, Freightos Limited is 5.86 times more volatile than Kuehne Nagel International. It trades about 0.09 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.25 per unit of risk. If you would invest 152.00 in Freightos Limited Ordinary on September 12, 2024 and sell it today you would earn a total of 44.00 from holding Freightos Limited Ordinary or generate 28.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Freightos Limited Ordinary vs. Kuehne Nagel International
Performance |
Timeline |
Freightos Limited |
Kuehne Nagel Interna |
Freightos Limited and Kuehne Nagel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Freightos Limited and Kuehne Nagel
The main advantage of trading using opposite Freightos Limited and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freightos Limited position performs unexpectedly, Kuehne Nagel 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 Nagel will offset losses from the drop in Kuehne Nagel's long position.Freightos Limited vs. Hub Group | Freightos Limited vs. Landstar System | Freightos Limited vs. JB Hunt Transport | Freightos Limited vs. Expeditors International of |
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Check out your portfolio center.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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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