Correlation Between DSV Panalpina and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and Deutsche Post 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 DSV Panalpina and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSV Panalpina AS and Deutsche Post AG, you can compare the effects of market volatilities on DSV Panalpina and Deutsche Post 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 DSV Panalpina with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and Deutsche Post.
Diversification Opportunities for DSV Panalpina and Deutsche Post
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DSV and Deutsche is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG and DSV Panalpina 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 DSV Panalpina AS are associated (or correlated) with Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Deutsche Post go up and down completely randomly.
Pair Corralation between DSV Panalpina and Deutsche Post
Assuming the 90 days trading horizon DSV Panalpina AS is expected to generate 0.67 times more return on investment than Deutsche Post. However, DSV Panalpina AS is 1.49 times less risky than Deutsche Post. It trades about -0.01 of its potential returns per unit of risk. Deutsche Post AG is currently generating about -0.14 per unit of risk. If you would invest 19,935 in DSV Panalpina AS on September 1, 2024 and sell it today you would lose (75.00) from holding DSV Panalpina AS or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSV Panalpina AS vs. Deutsche Post AG
Performance |
| Timeline |
| DSV Panalpina AS |
| Deutsche Post AG |
DSV Panalpina and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and Deutsche Post
The main advantage of trading using opposite DSV Panalpina and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's long position.| DSV Panalpina vs. ZTO Express | DSV Panalpina vs. Superior Plus Corp | DSV Panalpina vs. Origin Agritech | DSV Panalpina vs. Identiv |
| Deutsche Post vs. ZTO Express | Deutsche Post vs. Superior Plus Corp | Deutsche Post vs. Origin Agritech | Deutsche Post vs. Identiv |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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