Correlation Between Deutsche Post and Blockchain Industries

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

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

Diversification Opportunities for Deutsche Post and Blockchain Industries

-0.38

Correlation Coefficient

Deutsche Post  Blockchain Industries

Very good diversification

The 3 months correlation between Deutsche and Blockchain is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Blockchain Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Industries and Deutsche Post 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 Deutsche Post AG are associated (or correlated) with Blockchain Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Industries has no effect on the direction of Deutsche Post i.e., Deutsche Post and Blockchain Industries go up and down completely randomly.

Pair Corralation between Deutsche Post and Blockchain Industries

Assuming the 90 days horizon Deutsche Post is expected to generate 2.06 times less return on investment than Blockchain Industries. But when comparing it to its historical volatility, Deutsche Post AG is 6.99 times less risky than Blockchain Industries. It trades about 0.04 of its potential returns per unit of risk. Blockchain Industries is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  0.97  in Blockchain Industries on May 3, 2025 and sell it today you would lose (0.27) from holding Blockchain Industries or give up 27.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Deutsche Post AG  vs.  Blockchain Industries

Deutsche Post AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Post AG are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Deutsche Post is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Blockchain Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blockchain Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly unfluctuating forward indicators, Blockchain Industries may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Deutsche Post and Blockchain Industries

The main advantage of trading using opposite Deutsche Post and Blockchain Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Post position performs unexpectedly, Blockchain Industries 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 Blockchain Industries will offset losses from the drop in Blockchain Industries' long position.

The idea behind Deutsche Post AG and Blockchain Industries 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.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.