Correlation Between Deutsche Post and Intel
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on Deutsche Post and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Intel.
Diversification Opportunities for Deutsche Post and Intel
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and Intel is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Deutsche Post i.e., Deutsche Post and Intel go up and down completely randomly.
Pair Corralation between Deutsche Post and Intel
Assuming the 90 days trading horizon Deutsche Post is expected to generate 1.41 times less return on investment than Intel. But when comparing it to its historical volatility, Deutsche Post AG is 1.49 times less risky than Intel. It trades about 0.01 of its potential returns per unit of risk. Intel is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,595 in Intel on September 3, 2024 and sell it today you would lose (179.00) from holding Intel or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Post AG vs. Intel
Performance |
| Timeline |
| Deutsche Post AG |
| Intel |
Deutsche Post and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Intel
The main advantage of trading using opposite Deutsche Post and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Deutsche Post vs. United Parcel Service | Deutsche Post vs. FedEx | Deutsche Post vs. DSV Panalpina AS | Deutsche Post vs. Bollor SE |
| Intel vs. Altair Engineering | Intel vs. INTERCONT HOTELS | Intel vs. Playa Hotels Resorts | Intel vs. Corsair Gaming |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |