Correlation Between Deutsche Post and Washington Business
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Washington Business 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 Washington Business 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 Washington Business Bank, you can compare the effects of market volatilities on Deutsche Post and Washington Business 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 Washington Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Washington Business.
Diversification Opportunities for Deutsche Post and Washington Business
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deutsche and Washington is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Washington Business Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Business Bank 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 Washington Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Washington Business Bank has no effect on the direction of Deutsche Post i.e., Deutsche Post and Washington Business go up and down completely randomly.
Pair Corralation between Deutsche Post and Washington Business
If you would invest 3,629 in Deutsche Post AG on October 26, 2024 and sell it today you would earn a total of 105.00 from holding Deutsche Post AG or generate 2.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 15.38% |
Values | Daily Returns |
Deutsche Post AG vs. Washington Business Bank
Performance |
Timeline |
Deutsche Post AG |
Washington Business Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Deutsche Post and Washington Business Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Deutsche Post and Washington Business
The main advantage of trading using opposite Deutsche Post and Washington Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Washington Business 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 Washington Business will offset losses from the drop in Washington Business' 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 |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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