Correlation Between Deutsche Post and AMP
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and AMP 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 AMP 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 AMP, you can compare the effects of market volatilities on Deutsche Post and AMP 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 AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and AMP.
Diversification Opportunities for Deutsche Post and AMP
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deutsche and AMP is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP 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 AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of Deutsche Post i.e., Deutsche Post and AMP go up and down completely randomly.
Pair Corralation between Deutsche Post and AMP
If you would invest 72.00 in AMP on September 1, 2024 and sell it today you would earn a total of 0.00 from holding AMP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Deutsche Post AG vs. AMP
Performance |
| Timeline |
| Deutsche Post AG |
| AMP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Deutsche Post and AMP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and AMP
The main advantage of trading using opposite Deutsche Post and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.| Deutsche Post vs. Kuehne Nagel International | Deutsche Post vs. Kuehne Nagel International | Deutsche Post vs. DSV Panalpina AS | Deutsche Post vs. DSV Panalpina AS |
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.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |