Correlation Between MONEYSUPERMARKET and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both MONEYSUPERMARKET 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 MONEYSUPERMARKET and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MONEYSUPERMARKET and Deutsche Post AG, you can compare the effects of market volatilities on MONEYSUPERMARKET 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 MONEYSUPERMARKET with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of MONEYSUPERMARKET and Deutsche Post.
Diversification Opportunities for MONEYSUPERMARKET and Deutsche Post
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MONEYSUPERMARKET and Deutsche is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding MONEYSUPERMARKET 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 MONEYSUPERMARKET 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 MONEYSUPERMARKET 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 MONEYSUPERMARKET i.e., MONEYSUPERMARKET and Deutsche Post go up and down completely randomly.
Pair Corralation between MONEYSUPERMARKET and Deutsche Post
Assuming the 90 days trading horizon MONEYSUPERMARKET is expected to under-perform the Deutsche Post. But the stock apears to be less risky and, when comparing its historical volatility, MONEYSUPERMARKET is 1.06 times less risky than Deutsche Post. The stock trades about -0.02 of its potential returns per unit of risk. The Deutsche Post AG is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 4,017 in Deutsche Post AG on August 29, 2024 and sell it today you would lose (547.00) from holding Deutsche Post AG or give up 13.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MONEYSUPERMARKET vs. Deutsche Post AG
Performance |
| Timeline |
| MONEYSUPERMARKET |
| Deutsche Post AG |
MONEYSUPERMARKET and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MONEYSUPERMARKET and Deutsche Post
The main advantage of trading using opposite MONEYSUPERMARKET and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MONEYSUPERMARKET 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.| MONEYSUPERMARKET vs. Apple Inc | MONEYSUPERMARKET vs. Apple Inc | MONEYSUPERMARKET vs. Superior Plus Corp | MONEYSUPERMARKET vs. SIVERS SEMICONDUCTORS AB |
| Deutsche Post vs. ZTO Express | Deutsche Post vs. Expeditors International of | Deutsche Post vs. Superior Plus Corp | Deutsche Post vs. Origin Agritech |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |