Correlation Between Clover Health and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Clover Health 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 Clover Health and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clover Health Investments, and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Clover Health 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 Clover Health with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clover Health and Deutsche Bank.
Diversification Opportunities for Clover Health and Deutsche Bank
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clover and Deutsche is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Clover Health Investments, 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 Clover Health 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 Clover Health Investments, 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 Clover Health i.e., Clover Health and Deutsche Bank go up and down completely randomly.
Pair Corralation between Clover Health and Deutsche Bank
Assuming the 90 days trading horizon Clover Health Investments, is expected to generate 1.48 times more return on investment than Deutsche Bank. However, Clover Health is 1.48 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about 0.47 of its potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.07 per unit of risk. If you would invest 1,982 in Clover Health Investments, on October 20, 2024 and sell it today you would earn a total of 510.00 from holding Clover Health Investments, or generate 25.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clover Health Investments, vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Clover Health Invest |
| Deutsche Bank Aktien |
Clover Health and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clover Health and Deutsche Bank
The main advantage of trading using opposite Clover Health and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clover Health 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.| Clover Health vs. Taiwan Semiconductor Manufacturing | Clover Health vs. Apple Inc | Clover Health vs. Alibaba Group Holding | Clover Health vs. Microsoft |
| Deutsche Bank vs. Marvell Technology | Deutsche Bank vs. Unity Software | Deutsche Bank vs. Agilent Technologies | Deutsche Bank vs. Academy Sports and |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |