Correlation Between Deutsche Bank and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Bangkok 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 Deutsche Bank and Bangkok Bank 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 Bangkok Bank Public, you can compare the effects of market volatilities on Deutsche Bank and Bangkok 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 Deutsche Bank with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Bangkok Bank.
Diversification Opportunities for Deutsche Bank and Bangkok Bank
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Deutsche and Bangkok is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public 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 Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Bangkok Bank go up and down completely randomly.
Pair Corralation between Deutsche Bank and Bangkok Bank
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 0.54 times more return on investment than Bangkok Bank. However, Deutsche Bank AG is 1.87 times less risky than Bangkok Bank. It trades about 0.13 of its potential returns per unit of risk. Bangkok Bank Public is currently generating about -0.02 per unit of risk. If you would invest 1,620 in Deutsche Bank AG on September 23, 2024 and sell it today you would earn a total of 73.00 from holding Deutsche Bank AG or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Bank AG vs. Bangkok Bank Public
Performance |
| Timeline |
| Deutsche Bank AG |
| Bangkok Bank Public |
Deutsche Bank and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Bangkok Bank
The main advantage of trading using opposite Deutsche Bank and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Bangkok 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 Bangkok Bank will offset losses from the drop in Bangkok Bank'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 |
| Bangkok Bank vs. Banco Bradesco SA | Bangkok Bank vs. Itau Unibanco Banco | Bangkok Bank vs. Lloyds Banking Group | Bangkok Bank vs. Deutsche Bank AG |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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