Correlation Between Beowulf Mining and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Beowulf Mining 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 Beowulf Mining and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beowulf Mining and Deutsche Post AG, you can compare the effects of market volatilities on Beowulf Mining 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 Beowulf Mining with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and Deutsche Post.
Diversification Opportunities for Beowulf Mining and Deutsche Post
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beowulf and Deutsche is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining 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 Beowulf Mining 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 Beowulf Mining 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 Beowulf Mining i.e., Beowulf Mining and Deutsche Post go up and down completely randomly.
Pair Corralation between Beowulf Mining and Deutsche Post
Assuming the 90 days trading horizon Beowulf Mining is expected to generate 0.41 times more return on investment than Deutsche Post. However, Beowulf Mining is 2.43 times less risky than Deutsche Post. It trades about -0.31 of its potential returns per unit of risk. Deutsche Post AG is currently generating about -0.15 per unit of risk. If you would invest 2,000 in Beowulf Mining on September 1, 2024 and sell it today you would lose (100.00) from holding Beowulf Mining or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beowulf Mining vs. Deutsche Post AG
Performance |
| Timeline |
| Beowulf Mining |
| Deutsche Post AG |
Beowulf Mining and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beowulf Mining and Deutsche Post
The main advantage of trading using opposite Beowulf Mining and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining 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.| Beowulf Mining vs. Alfa Financial Software | Beowulf Mining vs. PPHE Hotel Group | Beowulf Mining vs. Wizz Air Holdings | Beowulf Mining vs. Air Products Chemicals |
| Deutsche Post vs. Blackrock World Mining | Deutsche Post vs. Beowulf Mining | Deutsche Post vs. Hochschild Mining plc | Deutsche Post vs. Allianz Technology Trust |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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