Correlation Between Deutsche Post and Kuehne Nagel

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

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

Diversification Opportunities for Deutsche Post and Kuehne Nagel

-0.65

Correlation Coefficient

Deutsche Post  Kuehne Nagel

Excellent diversification

The 3 months correlation between Deutsche and Kuehne is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG 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 Deutsche Post 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 Deutsche Post AG 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 Deutsche Post i.e., Deutsche Post and Kuehne Nagel go up and down completely randomly.

Pair Corralation between Deutsche Post and Kuehne Nagel

If you would invest  5,163  in Deutsche Post AG on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Deutsche Post AG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Deutsche Post AG  vs.  Kuehne Nagel International

Deutsche Post AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Deutsche Post AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Deutsche Post is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Deutsche Post and Kuehne Nagel

The main advantage of trading using opposite Deutsche Post and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post 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.

The idea behind Deutsche Post AG 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.