Correlation Between SINGAPORE POST and Kuehne Nagel

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

Diversification Opportunities for SINGAPORE POST and Kuehne Nagel

-0.84

Correlation Coefficient

SINGAPORE POST  Kuehne Nagel

Pay attention - limited upside

The 3 months correlation between SINGAPORE and Kuehne is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE POST 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 SINGAPORE 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 SINGAPORE POST 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 SINGAPORE POST i.e., SINGAPORE POST and Kuehne Nagel go up and down completely randomly.

Pair Corralation between SINGAPORE POST and Kuehne Nagel

Assuming the 90 days trading horizon SINGAPORE POST is expected to generate 1.82 times more return on investment than Kuehne Nagel. However, SINGAPORE POST is 1.82 times more volatile than Kuehne Nagel International. It trades about 0.17 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.21 per unit of risk. If you would invest  29.00  in SINGAPORE POST on September 3, 2024 and sell it today you would earn a total of  10.00  from holding SINGAPORE POST or generate 34.48% return on investment over 90 days.

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

SINGAPORE POST  vs.  Kuehne Nagel International

SINGAPORE POST

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SINGAPORE POST are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, SINGAPORE POST unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 fragile performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with SINGAPORE POST and Kuehne Nagel

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

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.