Correlation Between DSV Panalpina and Pitney Bowes
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and Pitney Bowes 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 DSV Panalpina and Pitney Bowes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSV Panalpina AS and Pitney Bowes, you can compare the effects of market volatilities on DSV Panalpina and Pitney Bowes 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 DSV Panalpina with a short position of Pitney Bowes. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and Pitney Bowes.
Diversification Opportunities for DSV Panalpina and Pitney Bowes
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DSV and Pitney is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Pitney Bowes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pitney Bowes and DSV Panalpina 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 DSV Panalpina AS are associated (or correlated) with Pitney Bowes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pitney Bowes has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Pitney Bowes go up and down completely randomly.
Pair Corralation between DSV Panalpina and Pitney Bowes
Assuming the 90 days horizon DSV Panalpina is expected to generate 2.37 times less return on investment than Pitney Bowes. But when comparing it to its historical volatility, DSV Panalpina AS is 1.2 times less risky than Pitney Bowes. It trades about 0.04 of its potential returns per unit of risk. Pitney Bowes is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 410.00 in Pitney Bowes on October 6, 2024 and sell it today you would earn a total of 323.00 from holding Pitney Bowes or generate 78.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DSV Panalpina AS vs. Pitney Bowes
Performance |
Timeline |
DSV Panalpina AS |
Pitney Bowes |
DSV Panalpina and Pitney Bowes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DSV Panalpina and Pitney Bowes
The main advantage of trading using opposite DSV Panalpina and Pitney Bowes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Pitney Bowes 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 Pitney Bowes will offset losses from the drop in Pitney Bowes' long position.DSV Panalpina vs. Kuehne Nagel International | DSV Panalpina vs. CH Robinson Worldwide | DSV Panalpina vs. Kuehne Nagel International | DSV Panalpina vs. United Parcel Service |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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