Correlation Between Mitsubishi Electric and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Mitsubishi Electric 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 Mitsubishi Electric and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsubishi Electric and Deutsche Post AG, you can compare the effects of market volatilities on Mitsubishi Electric 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 Mitsubishi Electric with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi Electric and Deutsche Post.
Diversification Opportunities for Mitsubishi Electric and Deutsche Post
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitsubishi and Deutsche is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi Electric 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 Mitsubishi Electric 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 Mitsubishi Electric 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 Mitsubishi Electric i.e., Mitsubishi Electric and Deutsche Post go up and down completely randomly.
Pair Corralation between Mitsubishi Electric and Deutsche Post
Assuming the 90 days trading horizon Mitsubishi Electric is expected to generate 1.35 times more return on investment than Deutsche Post. However, Mitsubishi Electric is 1.35 times more volatile than Deutsche Post AG. It trades about 0.04 of its potential returns per unit of risk. Deutsche Post AG is currently generating about -0.02 per unit of risk. If you would invest 1,230 in Mitsubishi Electric on August 29, 2024 and sell it today you would earn a total of 339.00 from holding Mitsubishi Electric or generate 27.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsubishi Electric vs. Deutsche Post AG
Performance |
| Timeline |
| Mitsubishi Electric |
| Deutsche Post AG |
Mitsubishi Electric and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi Electric and Deutsche Post
The main advantage of trading using opposite Mitsubishi Electric and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi Electric 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.| Mitsubishi Electric vs. MeVis Medical Solutions | Mitsubishi Electric vs. Renesas Electronics | Mitsubishi Electric vs. SINGAPORE AIRLINES | Mitsubishi Electric vs. Japan Medical Dynamic |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets |