Correlation Between VAT Group and Kuehne Nagel

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

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

Diversification Opportunities for VAT Group and Kuehne Nagel

-0.1

Correlation Coefficient

VAT Group  Kuehne Nagel

Good diversification

The 3 months correlation between VAT and Kuehne is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding VAT Group AG and Kuehne Nagel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel and VAT Group 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 VAT Group 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 has no effect on the direction of VAT Group i.e., VAT Group and Kuehne Nagel go up and down completely randomly.

Pair Corralation between VAT Group and Kuehne Nagel

Assuming the 90 days trading horizon VAT Group AG is expected to generate 1.4 times more return on investment than Kuehne Nagel. However, VAT Group is 1.4 times more volatile than Kuehne Nagel. It trades about 0.01 of its potential returns per unit of risk. Kuehne Nagel is currently generating about -0.04 per unit of risk. If you would invest  34,018  in VAT Group AG on April 24, 2025 and sell it today you would lose (998.00) from holding VAT Group AG or give up 2.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

VAT Group AG  vs.  Kuehne Nagel

VAT Group AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VAT Group AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, VAT Group showed solid returns over the last few months and may actually be approaching a breakup point.

Kuehne Nagel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kuehne Nagel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with VAT Group and Kuehne Nagel

The main advantage of trading using opposite VAT Group and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VAT Group 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 VAT Group AG and Kuehne Nagel 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.