Correlation Between Deutsche Bank and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Pintec Technology 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 Pintec Technology 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 Pintec Technology Holdings, you can compare the effects of market volatilities on Deutsche Bank and Pintec Technology 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 Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Pintec Technology.
Diversification Opportunities for Deutsche Bank and Pintec Technology
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deutsche and Pintec is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology 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 Pintec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pintec Technology has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Pintec Technology go up and down completely randomly.
Pair Corralation between Deutsche Bank and Pintec Technology
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to under-perform the Pintec Technology. But the stock apears to be less risky and, when comparing its historical volatility, Deutsche Bank AG is 2.82 times less risky than Pintec Technology. The stock trades about -0.08 of its potential returns per unit of risk. The Pintec Technology Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 90.00 in Pintec Technology Holdings on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Pintec Technology Holdings or generate 6.67% 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. Pintec Technology Holdings
Performance |
| Timeline |
| Deutsche Bank AG |
| Pintec Technology |
Deutsche Bank and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Pintec Technology
The main advantage of trading using opposite Deutsche Bank and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Pintec Technology 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 Pintec Technology will offset losses from the drop in Pintec Technology'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 |
| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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