Correlation Between Deutsche Post and Blackrock World
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Blackrock World 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 Blackrock World 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 Blackrock World Mining, you can compare the effects of market volatilities on Deutsche Post and Blackrock World 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 Blackrock World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Blackrock World.
Diversification Opportunities for Deutsche Post and Blackrock World
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deutsche and Blackrock is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Blackrock World Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock World Mining 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 Blackrock World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock World Mining has no effect on the direction of Deutsche Post i.e., Deutsche Post and Blackrock World go up and down completely randomly.
Pair Corralation between Deutsche Post and Blackrock World
Assuming the 90 days trading horizon Deutsche Post AG is expected to generate 0.92 times more return on investment than Blackrock World. However, Deutsche Post AG is 1.09 times less risky than Blackrock World. It trades about 0.01 of its potential returns per unit of risk. Blackrock World Mining is currently generating about -0.01 per unit of risk. If you would invest 3,453 in Deutsche Post AG on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Deutsche Post AG or generate 0.81% 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. Blackrock World Mining
Performance |
| Timeline |
| Deutsche Post AG |
| Blackrock World Mining |
Deutsche Post and Blackrock World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Blackrock World
The main advantage of trading using opposite Deutsche Post and Blackrock World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Blackrock World 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 Blackrock World will offset losses from the drop in Blackrock World's long position.| Deutsche Post vs. Blackrock World Mining | Deutsche Post vs. Beowulf Mining | Deutsche Post vs. Hochschild Mining plc | Deutsche Post vs. Allianz Technology Trust |
| Blackrock World vs. Zanaga Iron Ore | Blackrock World vs. Veolia Environnement VE | Blackrock World vs. Impax Environmental Markets | Blackrock World vs. Ebro Foods |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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