Correlation Between Deutsche Post and Expeditors International
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Expeditors International 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 Expeditors International 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 Expeditors International of, you can compare the effects of market volatilities on Deutsche Post and Expeditors International 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 Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Expeditors International.
Diversification Opportunities for Deutsche Post and Expeditors International
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Deutsche and Expeditors is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International 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 Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Deutsche Post i.e., Deutsche Post and Expeditors International go up and down completely randomly.
Pair Corralation between Deutsche Post and Expeditors International
Assuming the 90 days trading horizon Deutsche Post AG is expected to generate 1.33 times more return on investment than Expeditors International. However, Deutsche Post is 1.33 times more volatile than Expeditors International of. It trades about 0.02 of its potential returns per unit of risk. Expeditors International of is currently generating about 0.01 per unit of risk. If you would invest 3,780 in Deutsche Post AG on December 27, 2024 and sell it today you would earn a total of 280.00 from holding Deutsche Post AG or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Post AG vs. Expeditors International of
Performance |
| Timeline |
| Deutsche Post AG |
| Expeditors International |
Deutsche Post and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Expeditors International
The main advantage of trading using opposite Deutsche Post and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Expeditors International 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 Expeditors International will offset losses from the drop in Expeditors International's long position.| Deutsche Post vs. Pets at Home | Deutsche Post vs. Aegean Airlines SA | Deutsche Post vs. United Airlines Holdings | Deutsche Post vs. KENEDIX OFFICE INV |
| Expeditors International vs. FIREWEED METALS P | Expeditors International vs. Media and Games | Expeditors International vs. Prosiebensat 1 Media | Expeditors International vs. CanSino Biologics |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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