Correlation Between Atlas Copco and Kuehne +

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

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

Diversification Opportunities for Atlas Copco and Kuehne +

0.05

Correlation Coefficient

Atlas Copco  Kuehne +

Significant diversification

The 3 months correlation between Atlas and Kuehne is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Copco ADR 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 Atlas Copco 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 Atlas Copco ADR 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 Atlas Copco i.e., Atlas Copco and Kuehne + go up and down completely randomly.

Pair Corralation between Atlas Copco and Kuehne +

Assuming the 90 days horizon Atlas Copco ADR is expected to generate 1.16 times more return on investment than Kuehne +. However, Atlas Copco is 1.16 times more volatile than Kuehne Nagel International. It trades about -0.02 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.16 per unit of risk. If you would invest  1,373  in Atlas Copco ADR on May 6, 2025 and sell it today you would lose (40.00) from holding Atlas Copco ADR or give up 2.91% of portfolio value over 90 days.

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

Atlas Copco ADR  vs.  Kuehne Nagel International

Atlas Copco ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atlas Copco ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Atlas Copco 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

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

Pair Trading with Atlas Copco and Kuehne +

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