Correlation Between CH Robinson and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both CH Robinson 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 CH Robinson and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CH Robinson Worldwide and Deutsche Post AG, you can compare the effects of market volatilities on CH Robinson 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 CH Robinson with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and Deutsche Post.
Diversification Opportunities for CH Robinson and Deutsche Post
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CHRW and Deutsche is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide 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 CH Robinson 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 CH Robinson Worldwide 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 CH Robinson i.e., CH Robinson and Deutsche Post go up and down completely randomly.
Pair Corralation between CH Robinson and Deutsche Post
Given the investment horizon of 90 days CH Robinson Worldwide is expected to generate 0.66 times more return on investment than Deutsche Post. However, CH Robinson Worldwide is 1.51 times less risky than Deutsche Post. It trades about -0.03 of its potential returns per unit of risk. Deutsche Post AG is currently generating about -0.19 per unit of risk. If you would invest 10,894 in CH Robinson Worldwide on August 28, 2024 and sell it today you would lose (140.00) from holding CH Robinson Worldwide or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CH Robinson Worldwide vs. Deutsche Post AG
Performance |
| Timeline |
| CH Robinson Worldwide |
| Deutsche Post AG |
CH Robinson and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Robinson and Deutsche Post
The main advantage of trading using opposite CH Robinson and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson 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.| CH Robinson vs. JB Hunt Transport | CH Robinson vs. Landstar System | CH Robinson vs. Hub Group | CH Robinson vs. Forward Air |
| Deutsche Post vs. Kuehne Nagel International | Deutsche Post vs. United Parcel Service | Deutsche Post vs. FedEx | Deutsche Post vs. GXO Logistics |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |