Correlation Between Deutsche Bank and AGM Group
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and AGM Group 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 AGM Group 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 AGM Group Holdings, you can compare the effects of market volatilities on Deutsche Bank and AGM Group 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 AGM Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and AGM Group.
Diversification Opportunities for Deutsche Bank and AGM Group
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Deutsche and AGM is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and AGM Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGM Group Holdings 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 AGM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGM Group Holdings has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and AGM Group go up and down completely randomly.
Pair Corralation between Deutsche Bank and AGM Group
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to under-perform the AGM Group. But the stock apears to be less risky and, when comparing its historical volatility, Deutsche Bank AG is 2.26 times less risky than AGM Group. The stock trades about -0.06 of its potential returns per unit of risk. The AGM Group Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 176.00 in AGM Group Holdings on August 31, 2024 and sell it today you would lose (1.00) from holding AGM Group Holdings or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Bank AG vs. AGM Group Holdings
Performance |
| Timeline |
| Deutsche Bank AG |
| AGM Group Holdings |
Deutsche Bank and AGM Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and AGM Group
The main advantage of trading using opposite Deutsche Bank and AGM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, AGM Group 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 AGM Group will offset losses from the drop in AGM Group's long position.| Deutsche Bank vs. Banco Bradesco SA | Deutsche Bank vs. Itau Unibanco Banco | Deutsche Bank vs. Lloyds Banking Group | Deutsche Bank vs. Banco Santander Brasil |
| AGM Group vs. TransAct Technologies Incorporated | AGM Group vs. Key Tronic | AGM Group vs. Identiv | AGM Group vs. AstroNova |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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