Correlation Between Brookfield Corp and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Brookfield Corp 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 Brookfield Corp and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Corp and Deutsche Bank AG, you can compare the effects of market volatilities on Brookfield Corp 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 Brookfield Corp with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and Deutsche Bank.
Diversification Opportunities for Brookfield Corp and Deutsche Bank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brookfield and Deutsche is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp 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 Brookfield Corp 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 Brookfield Corp 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 Brookfield Corp i.e., Brookfield Corp and Deutsche Bank go up and down completely randomly.
Pair Corralation between Brookfield Corp and Deutsche Bank
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 0.93 times more return on investment than Deutsche Bank. However, Brookfield Corp is 1.07 times less risky than Deutsche Bank. It trades about 0.24 of its potential returns per unit of risk. Deutsche Bank AG is currently generating about -0.08 per unit of risk. If you would invest 5,315 in Brookfield Corp on August 30, 2024 and sell it today you would earn a total of 822.00 from holding Brookfield Corp or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Corp vs. Deutsche Bank AG
Performance |
| Timeline |
| Brookfield Corp |
| Deutsche Bank AG |
Brookfield Corp and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and Deutsche Bank
The main advantage of trading using opposite Brookfield Corp and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Corp 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.| Brookfield Corp vs. KKR Co LP | Brookfield Corp vs. Blackstone Group | Brookfield Corp vs. T Rowe Price | Brookfield Corp vs. Apollo Global Management |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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