Correlation Between Wallenius Wilhelmsen and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Wallenius Wilhelmsen 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 Wallenius Wilhelmsen and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wallenius Wilhelmsen ASA and Deutsche Post AG, you can compare the effects of market volatilities on Wallenius Wilhelmsen 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 Wallenius Wilhelmsen with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wallenius Wilhelmsen and Deutsche Post.
Diversification Opportunities for Wallenius Wilhelmsen and Deutsche Post
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wallenius and Deutsche is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Wallenius Wilhelmsen ASA 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 Wallenius Wilhelmsen 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 Wallenius Wilhelmsen ASA 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 Wallenius Wilhelmsen i.e., Wallenius Wilhelmsen and Deutsche Post go up and down completely randomly.
Pair Corralation between Wallenius Wilhelmsen and Deutsche Post
Assuming the 90 days horizon Wallenius Wilhelmsen ASA is expected to under-perform the Deutsche Post. In addition to that, Wallenius Wilhelmsen is 1.18 times more volatile than Deutsche Post AG. It trades about -0.06 of its total potential returns per unit of risk. Deutsche Post AG is currently generating about 0.06 per unit of volatility. If you would invest 3,370 in Deutsche Post AG on November 3, 2024 and sell it today you would earn a total of 90.00 from holding Deutsche Post AG or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wallenius Wilhelmsen ASA vs. Deutsche Post AG
Performance |
| Timeline |
| Wallenius Wilhelmsen ASA |
| Deutsche Post AG |
Wallenius Wilhelmsen and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wallenius Wilhelmsen and Deutsche Post
The main advantage of trading using opposite Wallenius Wilhelmsen and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wallenius Wilhelmsen 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.| Wallenius Wilhelmsen vs. Haier Smart Home | Wallenius Wilhelmsen vs. DFS Furniture PLC | Wallenius Wilhelmsen vs. Corporate Office Properties | Wallenius Wilhelmsen vs. KENEDIX OFFICE INV |
| Deutsche Post vs. Renesas Electronics | Deutsche Post vs. Heidelberg Materials AG | Deutsche Post vs. G III Apparel Group | Deutsche Post vs. Methode Electronics |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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