Correlation Between Deutsche Post and Logista
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Logista 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 Logista 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 Logista, you can compare the effects of market volatilities on Deutsche Post and Logista 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 Logista. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Logista.
Diversification Opportunities for Deutsche Post and Logista
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Deutsche and Logista is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Logista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logista 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 Logista. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logista has no effect on the direction of Deutsche Post i.e., Deutsche Post and Logista go up and down completely randomly.
Pair Corralation between Deutsche Post and Logista
Assuming the 90 days trading horizon Deutsche Post is expected to generate 5.35 times less return on investment than Logista. In addition to that, Deutsche Post is 1.92 times more volatile than Logista. It trades about 0.01 of its total potential returns per unit of risk. Logista is currently generating about 0.08 per unit of volatility. If you would invest 2,036 in Logista on August 26, 2024 and sell it today you would earn a total of 942.00 from holding Logista or generate 46.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Post AG vs. Logista
Performance |
| Timeline |
| Deutsche Post AG |
| Logista |
Deutsche Post and Logista Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Logista
The main advantage of trading using opposite Deutsche Post and Logista positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Logista 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 Logista will offset losses from the drop in Logista's long position.| Deutsche Post vs. TreeHouse Foods | Deutsche Post vs. AUSNUTRIA DAIRY | Deutsche Post vs. MONEYSUPERMARKET | Deutsche Post vs. Monster Beverage Corp |
| Logista vs. Global Ship Lease | Logista vs. Scandinavian Tobacco Group | Logista vs. CONAGRA FOODS | Logista vs. IMPERIAL TOBACCO |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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