Correlation Between Jardine Matheson and Deutsche Post

Can any of the company-specific risk be diversified away by investing in both Jardine Matheson 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 Jardine Matheson and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jardine Matheson Holdings and Deutsche Post AG, you can compare the effects of market volatilities on Jardine Matheson 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 Jardine Matheson with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jardine Matheson and Deutsche Post.

Diversification Opportunities for Jardine Matheson and Deutsche Post

0.0

Correlation Coefficient

Jardine Matheson  Deutsche Post

Pay attention - limited upside

The 3 months correlation between Jardine and Deutsche is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jardine Matheson Holdings 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 Jardine Matheson 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 Jardine Matheson Holdings 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 Jardine Matheson i.e., Jardine Matheson and Deutsche Post go up and down completely randomly.

Pair Corralation between Jardine Matheson and Deutsche Post

If you would invest  6,250  in Jardine Matheson Holdings on September 24, 2024 and sell it today you would earn a total of  0.00  from holding Jardine Matheson Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Jardine Matheson Holdings  vs.  Deutsche Post AG

Jardine Matheson Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jardine Matheson Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Jardine Matheson is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Deutsche Post AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Deutsche Post AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Jardine Matheson and Deutsche Post

The main advantage of trading using opposite Jardine Matheson and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jardine Matheson 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 Jardine Matheson Holdings 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.

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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 Directory module to find actively traded commodities issued by global exchanges.