Correlation Between Expeditors International and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Expeditors International 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 Expeditors International and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expeditors International of and Deutsche Post AG, you can compare the effects of market volatilities on Expeditors International 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 Expeditors International with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expeditors International and Deutsche Post.
Diversification Opportunities for Expeditors International and Deutsche Post
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Expeditors and Deutsche is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International of 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 Expeditors International 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 Expeditors International of 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 Expeditors International i.e., Expeditors International and Deutsche Post go up and down completely randomly.
Pair Corralation between Expeditors International and Deutsche Post
Assuming the 90 days horizon Expeditors International of is expected to generate 0.74 times more return on investment than Deutsche Post. However, Expeditors International of is 1.35 times less risky than Deutsche Post. It trades about 0.02 of its potential returns per unit of risk. Deutsche Post AG is currently generating about 0.01 per unit of risk. If you would invest 10,012 in Expeditors International of on August 30, 2024 and sell it today you would earn a total of 1,338 from holding Expeditors International of or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expeditors International of vs. Deutsche Post AG
Performance |
| Timeline |
| Expeditors International |
| Deutsche Post AG |
Expeditors International and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expeditors International and Deutsche Post
The main advantage of trading using opposite Expeditors International and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expeditors International 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.| Expeditors International vs. CARSALESCOM | Expeditors International vs. Dalata Hotel Group | Expeditors International vs. Tradeweb Markets | Expeditors International vs. TRADEGATE |
| Deutsche Post vs. ZTO Express | Deutsche Post vs. Expeditors International of | Deutsche Post vs. Superior Plus Corp | Deutsche Post vs. Origin Agritech |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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