Correlation Between Intel and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Deutsche Post AG, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Deutsche Post.
Diversification Opportunities for Intel and Deutsche Post
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intel and Deutsche is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intel 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 Intel 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 Intel 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 Intel i.e., Intel and Deutsche Post go up and down completely randomly.
Pair Corralation between Intel and Deutsche Post
Assuming the 90 days trading horizon Intel is expected to under-perform the Deutsche Post. In addition to that, Intel is 1.63 times more volatile than Deutsche Post AG. It trades about -0.02 of its total potential returns per unit of risk. Deutsche Post AG is currently generating about -0.02 per unit of volatility. If you would invest 4,017 in Deutsche Post AG on August 29, 2024 and sell it today you would lose (547.00) from holding Deutsche Post AG or give up 13.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Deutsche Post AG
Performance |
| Timeline |
| Intel |
| Deutsche Post AG |
Intel and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Deutsche Post
The main advantage of trading using opposite Intel and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.The idea behind Intel and Deutsche Post AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |