Correlation Between Deutsche Post and Hub
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Hub 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 Hub 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 Hub Group, you can compare the effects of market volatilities on Deutsche Post and Hub 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 Hub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Hub.
Diversification Opportunities for Deutsche Post and Hub
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Deutsche and Hub is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Hub Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Group 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 Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Group has no effect on the direction of Deutsche Post i.e., Deutsche Post and Hub go up and down completely randomly.
Pair Corralation between Deutsche Post and Hub
Assuming the 90 days horizon Deutsche Post AG is expected to generate 0.83 times more return on investment than Hub. However, Deutsche Post AG is 1.21 times less risky than Hub. It trades about 0.16 of its potential returns per unit of risk. Hub Group is currently generating about 0.05 per unit of risk. If you would invest 3,801 in Deutsche Post AG on August 28, 2024 and sell it today you would earn a total of 1,362 from holding Deutsche Post AG or generate 35.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Deutsche Post AG vs. Hub Group
Performance |
| Timeline |
| Deutsche Post AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hub Group |
Deutsche Post and Hub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Hub
The main advantage of trading using opposite Deutsche Post and Hub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Hub 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 Hub will offset losses from the drop in Hub'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 |
| Hub vs. Aquagold International | Hub vs. Morningstar Unconstrained Allocation | Hub vs. Thrivent High Yield | Hub vs. Via Renewables |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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