Correlation Between Associated Capital and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Associated Capital 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 Associated Capital and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Deutsche Bank AG, you can compare the effects of market volatilities on Associated Capital 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 Associated Capital with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Deutsche Bank.
Diversification Opportunities for Associated Capital and Deutsche Bank
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Associated and Deutsche is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group 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 Associated Capital 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 Associated Capital Group 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 Associated Capital i.e., Associated Capital and Deutsche Bank go up and down completely randomly.
Pair Corralation between Associated Capital and Deutsche Bank
Allowing for the 90-day total investment horizon Associated Capital Group is expected to under-perform the Deutsche Bank. But the stock apears to be less risky and, when comparing its historical volatility, Associated Capital Group is 1.19 times less risky than Deutsche Bank. The stock trades about 0.0 of its potential returns per unit of risk. The Deutsche Bank AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 996.00 in Deutsche Bank AG on August 29, 2024 and sell it today you would earn a total of 633.00 from holding Deutsche Bank AG or generate 63.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. Deutsche Bank AG
Performance |
| Timeline |
| Associated Capital |
| Deutsche Bank AG |
Associated Capital and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Deutsche Bank
The main advantage of trading using opposite Associated Capital and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital 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.| Associated Capital vs. TPG Inc | Associated Capital vs. Carlyle Secured Lending | Associated Capital vs. Brookfield Corp |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |