Correlation Between Commerzbank and ANY Security
Can any of the company-specific risk be diversified away by investing in both Commerzbank and ANY Security 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 Commerzbank and ANY Security into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commerzbank AG and ANY Security Printing, you can compare the effects of market volatilities on Commerzbank and ANY Security 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 Commerzbank with a short position of ANY Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commerzbank and ANY Security.
Diversification Opportunities for Commerzbank and ANY Security
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Commerzbank and ANY is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Commerzbank AG and ANY Security Printing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANY Security Printing and Commerzbank 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 Commerzbank AG are associated (or correlated) with ANY Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANY Security Printing has no effect on the direction of Commerzbank i.e., Commerzbank and ANY Security go up and down completely randomly.
Pair Corralation between Commerzbank and ANY Security
Assuming the 90 days trading horizon Commerzbank AG is expected to under-perform the ANY Security. In addition to that, Commerzbank is 1.49 times more volatile than ANY Security Printing. It trades about -0.47 of its total potential returns per unit of risk. ANY Security Printing is currently generating about 0.11 per unit of volatility. If you would invest 427,000 in ANY Security Printing on August 29, 2024 and sell it today you would earn a total of 15,000 from holding ANY Security Printing or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
Commerzbank AG vs. ANY Security Printing
Performance |
| Timeline |
| Commerzbank AG |
| ANY Security Printing |
Commerzbank and ANY Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commerzbank and ANY Security
The main advantage of trading using opposite Commerzbank and ANY Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commerzbank position performs unexpectedly, ANY Security 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 ANY Security will offset losses from the drop in ANY Security's long position.| Commerzbank vs. NordTelekom Telecommunications Service | Commerzbank vs. Nutex Investments PLC | Commerzbank vs. Delta Technologies Nyrt |
| ANY Security vs. Commerzbank AG | ANY Security vs. OTP Bank Nyrt | ANY Security vs. NordTelekom Telecommunications Service | ANY Security vs. Nutex Investments PLC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |