Correlation Between GlobalData PLC and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both GlobalData PLC 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 GlobalData PLC and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlobalData PLC and Deutsche Post AG, you can compare the effects of market volatilities on GlobalData PLC 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 GlobalData PLC with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlobalData PLC and Deutsche Post.
Diversification Opportunities for GlobalData PLC and Deutsche Post
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GlobalData and Deutsche is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding GlobalData PLC 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 GlobalData PLC 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 GlobalData PLC 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 GlobalData PLC i.e., GlobalData PLC and Deutsche Post go up and down completely randomly.
Pair Corralation between GlobalData PLC and Deutsche Post
Assuming the 90 days trading horizon GlobalData PLC is expected to under-perform the Deutsche Post. In addition to that, GlobalData PLC is 1.09 times more volatile than Deutsche Post AG. It trades about -0.11 of its total potential returns per unit of risk. Deutsche Post AG is currently generating about 0.15 per unit of volatility. If you would invest 3,399 in Deutsche Post AG on December 25, 2024 and sell it today you would earn a total of 706.00 from holding Deutsche Post AG or generate 20.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GlobalData PLC vs. Deutsche Post AG
Performance |
Timeline |
GlobalData PLC |
Deutsche Post AG |
GlobalData PLC and Deutsche Post Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GlobalData PLC and Deutsche Post
The main advantage of trading using opposite GlobalData PLC and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlobalData PLC 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.GlobalData PLC vs. National Beverage Corp | GlobalData PLC vs. AMG Advanced Metallurgical | GlobalData PLC vs. Playtech Plc | GlobalData PLC vs. Global Net Lease |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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