Correlation Between Deutsche Post and Addentax Group
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Addentax Group 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 Addentax Group 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 Addentax Group Corp, you can compare the effects of market volatilities on Deutsche Post and Addentax Group 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 Addentax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Addentax Group.
Diversification Opportunities for Deutsche Post and Addentax Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and Addentax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Addentax Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addentax Group Corp 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 Addentax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addentax Group Corp has no effect on the direction of Deutsche Post i.e., Deutsche Post and Addentax Group go up and down completely randomly.
Pair Corralation between Deutsche Post and Addentax Group
Assuming the 90 days horizon Deutsche Post AG is expected to generate 0.24 times more return on investment than Addentax Group. However, Deutsche Post AG is 4.17 times less risky than Addentax Group. It trades about 0.13 of its potential returns per unit of risk. Addentax Group Corp is currently generating about -0.08 per unit of risk. If you would invest 4,256 in Deutsche Post AG on November 5, 2024 and sell it today you would earn a total of 907.00 from holding Deutsche Post AG or generate 21.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.27% |
| Values | Daily Returns |
Deutsche Post AG vs. Addentax Group Corp
Performance |
| Timeline |
| Deutsche Post AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Addentax Group Corp |
Deutsche Post and Addentax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Addentax Group
The main advantage of trading using opposite Deutsche Post and Addentax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Addentax Group 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 Addentax Group will offset losses from the drop in Addentax Group's long position.| Deutsche Post vs. DSV Panalpina AS | Deutsche Post vs. FedEx | Deutsche Post vs. United Parcel Service | Deutsche Post vs. Kuehne Nagel International |
| Addentax Group vs. Jayud Global Logistics | Addentax Group vs. Freightos Limited Ordinary | Addentax Group vs. Radiant Logistics | Addentax Group vs. JB Hunt Transport |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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