Correlation Between Amgen and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Amgen 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 Amgen and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Amgen 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 Amgen with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Deutsche Bank.
Diversification Opportunities for Amgen and Deutsche Bank
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amgen and Deutsche is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien and Amgen 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 Amgen Inc 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 Aktien has no effect on the direction of Amgen i.e., Amgen and Deutsche Bank go up and down completely randomly.
Pair Corralation between Amgen and Deutsche Bank
Assuming the 90 days trading horizon Amgen Inc is expected to under-perform the Deutsche Bank. In addition to that, Amgen is 1.39 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about -0.09 of its total potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.08 per unit of volatility. If you would invest 32,120 in Deutsche Bank Aktiengesellschaft on September 2, 2024 and sell it today you would earn a total of 2,084 from holding Deutsche Bank Aktiengesellschaft or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
Amgen Inc vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Amgen Inc |
| Deutsche Bank Aktien |
Amgen and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Deutsche Bank
The main advantage of trading using opposite Amgen and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen 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.| Amgen vs. Micron Technology | Amgen vs. GMxico Transportes SAB | Amgen vs. Delta Air Lines | Amgen vs. CVS Health |
| Deutsche Bank vs. Lloyds Banking Group | Deutsche Bank vs. Netflix | Deutsche Bank vs. Monster Beverage Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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