Correlation Between AllianceBernstein and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein 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 AllianceBernstein and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AllianceBernstein Holding LP and Deutsche Bank AG, you can compare the effects of market volatilities on AllianceBernstein 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 AllianceBernstein with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Deutsche Bank.
Diversification Opportunities for AllianceBernstein and Deutsche Bank
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AllianceBernstein and Deutsche is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP 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 AllianceBernstein 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 AllianceBernstein Holding LP 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 AllianceBernstein i.e., AllianceBernstein and Deutsche Bank go up and down completely randomly.
Pair Corralation between AllianceBernstein and Deutsche Bank
Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 1.29 times less return on investment than Deutsche Bank. But when comparing it to its historical volatility, AllianceBernstein Holding LP is 1.09 times less risky than Deutsche Bank. It trades about 0.11 of its potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,548 in Deutsche Bank AG on October 26, 2024 and sell it today you would earn a total of 455.00 from holding Deutsche Bank AG or generate 29.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AllianceBernstein Holding LP vs. Deutsche Bank AG
Performance |
Timeline |
AllianceBernstein |
Deutsche Bank AG |
AllianceBernstein and Deutsche Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AllianceBernstein and Deutsche Bank
The main advantage of trading using opposite AllianceBernstein and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein 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.AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation | AllianceBernstein vs. Carlyle Secured Lending |
Deutsche Bank vs. Banco Bradesco SA | Deutsche Bank vs. Itau Unibanco Banco | Deutsche Bank vs. Lloyds Banking Group | Deutsche Bank vs. Banco Santander Brasil |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Transaction History View history of all your transactions and understand their impact on performance | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |