Correlation Between CARSALESCOM and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both CARSALESCOM 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 CARSALESCOM and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CARSALESCOM and Deutsche Post AG, you can compare the effects of market volatilities on CARSALESCOM 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 CARSALESCOM with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARSALESCOM and Deutsche Post.
Diversification Opportunities for CARSALESCOM and Deutsche Post
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CARSALESCOM and Deutsche is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CARSALESCOM 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 CARSALESCOM 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 CARSALESCOM 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 CARSALESCOM i.e., CARSALESCOM and Deutsche Post go up and down completely randomly.
Pair Corralation between CARSALESCOM and Deutsche Post
Assuming the 90 days trading horizon CARSALESCOM is expected to generate 0.88 times more return on investment than Deutsche Post. However, CARSALESCOM is 1.13 times less risky than Deutsche Post. It trades about 0.08 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 1,510 in CARSALESCOM on October 16, 2024 and sell it today you would earn a total of 810.00 from holding CARSALESCOM or generate 53.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CARSALESCOM vs. Deutsche Post AG
Performance |
| Timeline |
| CARSALESCOM |
| Deutsche Post AG |
CARSALESCOM and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARSALESCOM and Deutsche Post
The main advantage of trading using opposite CARSALESCOM and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARSALESCOM 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.| CARSALESCOM vs. SHIP HEALTHCARE HLDGINC | CARSALESCOM vs. EPSILON HEALTHCARE LTD | CARSALESCOM vs. Tyson Foods | CARSALESCOM vs. CN MODERN DAIRY |
| Deutsche Post vs. ANTA SPORTS PRODUCT | Deutsche Post vs. Gaming and Leisure | Deutsche Post vs. CARSALESCOM | Deutsche Post vs. The Japan Steel |
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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