Correlation Between 4iG Nyrt and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both 4iG Nyrt and Deutsche Bank 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 4iG Nyrt and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4iG Nyrt and Deutsche Bank AG, you can compare the effects of market volatilities on 4iG Nyrt and Deutsche Bank 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 4iG Nyrt with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4iG Nyrt and Deutsche Bank.
Diversification Opportunities for 4iG Nyrt and Deutsche Bank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 4iG and Deutsche is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding 4iG Nyrt and Deutsche Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank AG and 4iG Nyrt 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 4iG Nyrt are associated (or correlated) with Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank AG has no effect on the direction of 4iG Nyrt i.e., 4iG Nyrt and Deutsche Bank go up and down completely randomly.
Pair Corralation between 4iG Nyrt and Deutsche Bank
Assuming the 90 days trading horizon 4iG Nyrt is expected to generate 1.49 times less return on investment than Deutsche Bank. In addition to that, 4iG Nyrt is 2.18 times more volatile than Deutsche Bank AG. It trades about 0.19 of its total potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.62 per unit of volatility. If you would invest 654,400 in Deutsche Bank AG on September 18, 2024 and sell it today you would earn a total of 47,500 from holding Deutsche Bank AG or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
4iG Nyrt vs. Deutsche Bank AG
Performance |
| Timeline |
| 4iG Nyrt |
| Deutsche Bank AG |
4iG Nyrt and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4iG Nyrt and Deutsche Bank
The main advantage of trading using opposite 4iG Nyrt and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4iG Nyrt position performs unexpectedly, Deutsche Bank 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 Bank will offset losses from the drop in Deutsche Bank's long position.| 4iG Nyrt vs. Infineon Technologies AG | 4iG Nyrt vs. Deutsche Bank AG | 4iG Nyrt vs. OTP Bank Nyrt | 4iG Nyrt vs. Delta Technologies Nyrt |
| Deutsche Bank vs. OTP Bank Nyrt | Deutsche Bank vs. MOL Nyrt | Deutsche Bank vs. OPUS GLOBAL Nyrt | Deutsche Bank vs. ALTEO Energiaszolgaltato Nyrt |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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