Correlation Between Deutsche Bank and Hamilton Lane
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Hamilton Lane 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 Hamilton Lane 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 Hamilton Lane, you can compare the effects of market volatilities on Deutsche Bank and Hamilton Lane 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 Hamilton Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Hamilton Lane.
Diversification Opportunities for Deutsche Bank and Hamilton Lane
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deutsche and Hamilton is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Hamilton Lane in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Lane 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 Hamilton Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Lane has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Hamilton Lane go up and down completely randomly.
Pair Corralation between Deutsche Bank and Hamilton Lane
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 0.99 times more return on investment than Hamilton Lane. However, Deutsche Bank AG is 1.01 times less risky than Hamilton Lane. It trades about 0.11 of its potential returns per unit of risk. Hamilton Lane is currently generating about 0.08 per unit of risk. If you would invest 1,222 in Deutsche Bank AG on November 4, 2024 and sell it today you would earn a total of 731.00 from holding Deutsche Bank AG or generate 59.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Bank AG vs. Hamilton Lane
Performance |
| Timeline |
| Deutsche Bank AG |
| Hamilton Lane |
Deutsche Bank and Hamilton Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Hamilton Lane
The main advantage of trading using opposite Deutsche Bank and Hamilton Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Hamilton Lane 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 Hamilton Lane will offset losses from the drop in Hamilton Lane'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 |
| Hamilton Lane vs. Noah Holdings | Hamilton Lane vs. Alvarium Tiedemann Holdings | Hamilton Lane vs. Blackrock Muniyield | Hamilton Lane vs. Blackrock Muni Intermediate |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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