Correlation Between Deutsche Post and CH Robinson
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and CH Robinson 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 CH Robinson 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 CH Robinson Worldwide, you can compare the effects of market volatilities on Deutsche Post and CH Robinson 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 CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and CH Robinson.
Diversification Opportunities for Deutsche Post and CH Robinson
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Deutsche and CHRW is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide 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 CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of Deutsche Post i.e., Deutsche Post and CH Robinson go up and down completely randomly.
Pair Corralation between Deutsche Post and CH Robinson
Assuming the 90 days horizon Deutsche Post AG is expected to under-perform the CH Robinson. In addition to that, Deutsche Post is 1.51 times more volatile than CH Robinson Worldwide. It trades about -0.19 of its total potential returns per unit of risk. CH Robinson Worldwide is currently generating about -0.03 per unit of volatility. 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 |
Deutsche Post AG vs. CH Robinson Worldwide
Performance |
| Timeline |
| Deutsche Post AG |
| CH Robinson Worldwide |
Deutsche Post and CH Robinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and CH Robinson
The main advantage of trading using opposite Deutsche Post and CH Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, CH Robinson 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 CH Robinson will offset losses from the drop in CH Robinson's long position.| Deutsche Post vs. Kuehne Nagel International | Deutsche Post vs. United Parcel Service | Deutsche Post vs. FedEx | Deutsche Post vs. GXO Logistics |
| CH Robinson vs. JB Hunt Transport | CH Robinson vs. Landstar System | CH Robinson vs. Hub Group | CH Robinson vs. Forward Air |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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