Correlation Between Deutsche Post and Deutsche Post

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

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

Diversification Opportunities for Deutsche Post and Deutsche Post

0.99

Correlation Coefficient

Deutsche Post  Deutsche Post

No risk reduction

The 3 months correlation between Deutsche and Deutsche is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG 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 Deutsche 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 Deutsche Post AG 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 Deutsche Post i.e., Deutsche Post and Deutsche Post go up and down completely randomly.

Pair Corralation between Deutsche Post and Deutsche Post

Assuming the 90 days trading horizon Deutsche Post AG is expected to under-perform the Deutsche Post. But the stock apears to be less risky and, when comparing its historical volatility, Deutsche Post AG is 1.07 times less risky than Deutsche Post. The stock trades about -0.17 of its potential returns per unit of risk. The Deutsche Post AG is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest  3,812  in Deutsche Post AG on October 7, 2024 and sell it today you would lose (421.00) from holding Deutsche Post AG or give up 11.04% of portfolio value over 90 days.

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

Deutsche Post AG  vs.  Deutsche Post AG

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 latest fragile performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

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. In spite of latest fragile performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Deutsche Post and Deutsche Post

The main advantage of trading using opposite Deutsche Post and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post 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 Deutsche Post AG 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.