Correlation Between Deutsche Post and Accesso Technology
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Accesso Technology 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 Accesso Technology 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 Accesso Technology Group, you can compare the effects of market volatilities on Deutsche Post and Accesso Technology 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 Accesso Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Accesso Technology.
Diversification Opportunities for Deutsche Post and Accesso Technology
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deutsche and Accesso is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Accesso Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accesso Technology 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 Accesso Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accesso Technology has no effect on the direction of Deutsche Post i.e., Deutsche Post and Accesso Technology go up and down completely randomly.
Pair Corralation between Deutsche Post and Accesso Technology
Assuming the 90 days trading horizon Deutsche Post AG is expected to generate 0.53 times more return on investment than Accesso Technology. However, Deutsche Post AG is 1.88 times less risky than Accesso Technology. It trades about 0.09 of its potential returns per unit of risk. Accesso Technology Group is currently generating about -0.09 per unit of risk. If you would invest 3,365 in Deutsche Post AG on November 4, 2024 and sell it today you would earn a total of 100.00 from holding Deutsche Post AG or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Post AG vs. Accesso Technology Group
Performance |
| Timeline |
| Deutsche Post AG |
| Accesso Technology |
Deutsche Post and Accesso Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Accesso Technology
The main advantage of trading using opposite Deutsche Post and Accesso Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Accesso Technology 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 Accesso Technology will offset losses from the drop in Accesso Technology's long position.| Deutsche Post vs. Cairo Communication SpA | Deutsche Post vs. Beowulf Mining | Deutsche Post vs. Endeavour Mining Corp | Deutsche Post vs. First Majestic Silver |
| Accesso Technology vs. Vietnam Enterprise Investments | Accesso Technology vs. AMG Advanced Metallurgical | Accesso Technology vs. Europa Metals | Accesso Technology vs. Golden Metal Resources |
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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