Correlation Between Deutsche Bank and Associated Capital
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Associated Capital 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 Deutsche Bank and Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Bank AG and Associated Capital Group, you can compare the effects of market volatilities on Deutsche Bank and Associated Capital 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 Deutsche Bank with a short position of Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Associated Capital.
Diversification Opportunities for Deutsche Bank and Associated Capital
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deutsche and Associated is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital and Deutsche Bank 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 Deutsche Bank AG are associated (or correlated) with Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Associated Capital go up and down completely randomly.
Pair Corralation between Deutsche Bank and Associated Capital
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 1.07 times more return on investment than Associated Capital. However, Deutsche Bank is 1.07 times more volatile than Associated Capital Group. It trades about 0.36 of its potential returns per unit of risk. Associated Capital Group is currently generating about 0.13 per unit of risk. If you would invest 1,750 in Deutsche Bank AG on November 5, 2024 and sell it today you would earn a total of 203.00 from holding Deutsche Bank AG or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Bank AG vs. Associated Capital Group
Performance |
| Timeline |
| Deutsche Bank AG |
| Associated Capital |
Deutsche Bank and Associated Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Associated Capital
The main advantage of trading using opposite Deutsche Bank and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.| Deutsche Bank vs. EZCORP Inc | Deutsche Bank vs. Orix Corp Ads | Deutsche Bank vs. SLM Corp | Deutsche Bank vs. Navient Corp |
| Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Muni Intermediate | Associated Capital vs. Blackrock Muniyield |
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.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |