Correlation Between Deutsche Post and Identiv
Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Identiv 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 Identiv 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 Identiv, you can compare the effects of market volatilities on Deutsche Post and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Identiv.
Diversification Opportunities for Deutsche Post and Identiv
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and Identiv is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of Deutsche Post i.e., Deutsche Post and Identiv go up and down completely randomly.
Pair Corralation between Deutsche Post and Identiv
Assuming the 90 days trading horizon Deutsche Post AG is expected to generate 0.47 times more return on investment than Identiv. However, Deutsche Post AG is 2.14 times less risky than Identiv. It trades about 0.01 of its potential returns per unit of risk. Identiv is currently generating about -0.01 per unit of risk. If you would invest 3,403 in Deutsche Post AG on September 3, 2024 and sell it today you would earn a total of 37.00 from holding Deutsche Post AG or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Post AG vs. Identiv
Performance |
| Timeline |
| Deutsche Post AG |
| Identiv |
Deutsche Post and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Post and Identiv
The main advantage of trading using opposite Deutsche Post and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| Deutsche Post vs. United Parcel Service | Deutsche Post vs. FedEx | Deutsche Post vs. DSV Panalpina AS | Deutsche Post vs. Bollor SE |
| Identiv vs. Hitachi Construction Machinery | Identiv vs. Sumitomo Mitsui Construction | Identiv vs. Marie Brizard Wine | Identiv vs. HYDROFARM HLD GRP |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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