Correlation Between Deutsche Post and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Komercni Banka 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 Komercni Banka 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 Komercni Banka, you can compare the effects of market volatilities on Deutsche Post and Komercni Banka 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 Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Komercni Banka.
Diversification Opportunities for Deutsche Post and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka 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 Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka has no effect on the direction of Deutsche Post i.e., Deutsche Post and Komercni Banka go up and down completely randomly.
Pair Corralation between Deutsche Post and Komercni Banka
Assuming the 90 days trading horizon Deutsche Post AG is expected to generate 107.16 times more return on investment than Komercni Banka. However, Deutsche Post is 107.16 times more volatile than Komercni Banka. It trades about 0.01 of its potential returns per unit of risk. Komercni Banka is currently generating about 0.04 per unit of risk. If you would invest 3,514 in Deutsche Post AG on August 26, 2024 and sell it today you would earn a total of 7.00 from holding Deutsche Post AG or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Deutsche Post AG vs. Komercni Banka
Performance |
| Timeline |
| Deutsche Post AG |
| Komercni Banka |
Deutsche Post and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Komercni Banka
The main advantage of trading using opposite Deutsche Post and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| Deutsche Post vs. Samsung Electronics Co | Deutsche Post vs. Samsung Electronics Co | Deutsche Post vs. Hyundai Motor | Deutsche Post vs. Toyota Motor Corp |
| Komercni Banka vs. Cars Inc | Komercni Banka vs. Science in Sport | Komercni Banka vs. Skandinaviska Enskilda Banken | Komercni Banka vs. Endeavour Mining Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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