Correlation Between Addentax Group and Deutsche Post

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

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

Diversification Opportunities for Addentax Group and Deutsche Post

0.55

Correlation Coefficient

Addentax Group  Deutsche Post

Very weak diversification

The 3 months correlation between Addentax and Deutsche is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Addentax Group Corp and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG and Addentax 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 Addentax Group Corp are associated (or correlated) with Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Addentax Group i.e., Addentax Group and Deutsche Post go up and down completely randomly.

Pair Corralation between Addentax Group and Deutsche Post

Given the investment horizon of 90 days Addentax Group Corp is expected to generate 3.09 times more return on investment than Deutsche Post. However, Addentax Group is 3.09 times more volatile than Deutsche Post AG. It trades about 0.0 of its potential returns per unit of risk. Deutsche Post AG is currently generating about -0.02 per unit of risk. If you would invest  123.00  in Addentax Group Corp on October 6, 2024 and sell it today you would lose (43.00) from holding Addentax Group Corp or give up 34.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.5%
Values	Daily Returns

Addentax Group Corp  vs.  Deutsche Post AG

Addentax Group Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Addentax Group Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Addentax Group reported solid returns over the last few months and may actually be approaching a breakup point.

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

Pair Trading with Addentax Group and Deutsche Post

The main advantage of trading using opposite Addentax Group and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addentax Group position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's long position.

The idea behind Addentax Group Corp and Deutsche Post AG 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.