Correlation Between Deutsche Bank and Oak Woods
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Oak Woods 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 Oak Woods 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 Oak Woods Acquisition, you can compare the effects of market volatilities on Deutsche Bank and Oak Woods 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 Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Oak Woods.
Diversification Opportunities for Deutsche Bank and Oak Woods
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deutsche and Oak is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods Acquisition 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 Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Oak Woods go up and down completely randomly.
Pair Corralation between Deutsche Bank and Oak Woods
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to under-perform the Oak Woods. But the stock apears to be less risky and, when comparing its historical volatility, Deutsche Bank AG is 3.48 times less risky than Oak Woods. The stock trades about -0.01 of its potential returns per unit of risk. The Oak Woods Acquisition is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Oak Woods Acquisition on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Oak Woods Acquisition or generate 0.0% 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. Oak Woods Acquisition
Performance |
| Timeline |
| Deutsche Bank AG |
| Oak Woods Acquisition |
Deutsche Bank and Oak Woods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Oak Woods
The main advantage of trading using opposite Deutsche Bank and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' 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 |
| Oak Woods vs. Highway Holdings Limited | Oak Woods vs. Siriuspoint | Oak Woods vs. Avient Corp | Oak Woods vs. AmTrust Financial Services |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |