Correlation Between Deutsche Post and Teb Bancorp
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Teb Bancorp 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 Teb Bancorp 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 Teb Bancorp, you can compare the effects of market volatilities on Deutsche Post and Teb Bancorp 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 Teb Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Teb Bancorp.
Diversification Opportunities for Deutsche Post and Teb Bancorp
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deutsche and Teb is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Teb Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teb Bancorp 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 Teb Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teb Bancorp has no effect on the direction of Deutsche Post i.e., Deutsche Post and Teb Bancorp go up and down completely randomly.
Pair Corralation between Deutsche Post and Teb Bancorp
Assuming the 90 days horizon Deutsche Post AG is expected to under-perform the Teb Bancorp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Deutsche Post AG is 1.9 times less risky than Teb Bancorp. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Teb Bancorp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 770.00 in Teb Bancorp on October 30, 2024 and sell it today you would lose (74.00) from holding Teb Bancorp or give up 9.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.94% |
| Values | Daily Returns |
Deutsche Post AG vs. Teb Bancorp
Performance |
| Timeline |
| Deutsche Post AG |
| Teb Bancorp |
Deutsche Post and Teb Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Teb Bancorp
The main advantage of trading using opposite Deutsche Post and Teb Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Teb Bancorp 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 Teb Bancorp will offset losses from the drop in Teb Bancorp'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 |
| Teb Bancorp vs. Sound Financial Bancorp | Teb Bancorp vs. Finward Bancorp | Teb Bancorp vs. Franklin Financial Services | Teb Bancorp vs. Community West Bancshares |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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