Correlation Between Deutsche Bank and OFS Credit
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and OFS Credit 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 OFS Credit 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 OFS Credit Company,, you can compare the effects of market volatilities on Deutsche Bank and OFS Credit 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 OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and OFS Credit.
Diversification Opportunities for Deutsche Bank and OFS Credit
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Deutsche and OFS is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and OFS Credit Company, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit , 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 OFS Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFS Credit , has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and OFS Credit go up and down completely randomly.
Pair Corralation between Deutsche Bank and OFS Credit
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 7.34 times more return on investment than OFS Credit. However, Deutsche Bank is 7.34 times more volatile than OFS Credit Company,. It trades about 0.08 of its potential returns per unit of risk. OFS Credit Company, is currently generating about 0.23 per unit of risk. If you would invest 1,038 in Deutsche Bank AG on August 31, 2024 and sell it today you would earn a total of 663.00 from holding Deutsche Bank AG or generate 63.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 10.96% |
| Values | Daily Returns |
Deutsche Bank AG vs. OFS Credit Company,
Performance |
| Timeline |
| Deutsche Bank AG |
| OFS Credit , |
Deutsche Bank and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and OFS Credit
The main advantage of trading using opposite Deutsche Bank and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, OFS Credit 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 OFS Credit will offset losses from the drop in OFS Credit'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 |
| OFS Credit vs. Prospect Capital | OFS Credit vs. State Street | OFS Credit vs. OFS Credit | OFS Credit vs. OFS Credit |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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