Correlation Between Deutsche Post and Barrister Energy

Can any of the company-specific risk be diversified away by investing in both Deutsche Post and Barrister Energy 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 Barrister Energy 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 Barrister Energy LLC, you can compare the effects of market volatilities on Deutsche Post and Barrister Energy 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 Barrister Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Post and Barrister Energy.

Diversification Opportunities for Deutsche Post and Barrister Energy

0.48

Correlation Coefficient

Deutsche Post  Barrister Energy

Very weak diversification

The 3 months correlation between Deutsche and Barrister is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Post AG and Barrister Energy LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrister Energy LLC 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 Barrister Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrister Energy LLC has no effect on the direction of Deutsche Post i.e., Deutsche Post and Barrister Energy go up and down completely randomly.

Pair Corralation between Deutsche Post and Barrister Energy

Assuming the 90 days horizon Deutsche Post is expected to generate 13.23 times less return on investment than Barrister Energy. But when comparing it to its historical volatility, Deutsche Post AG is 3.73 times less risky than Barrister Energy. It trades about 0.03 of its potential returns per unit of risk. Barrister Energy LLC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  240.00  in Barrister Energy LLC on May 4, 2025 and sell it today you would earn a total of  110.00  from holding Barrister Energy LLC or generate 45.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.38%
Values	Daily Returns

Deutsche Post AG  vs.  Barrister Energy LLC

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.

Barrister Energy LLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Barrister Energy LLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Barrister Energy showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Deutsche Post and Barrister Energy

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

The idea behind Deutsche Post AG and Barrister Energy LLC 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.