Correlation Between Deutsche Bank and Socit Gnrale
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Socit Gnrale 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 Socit Gnrale 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 Socit Gnrale Socit, you can compare the effects of market volatilities on Deutsche Bank and Socit Gnrale 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 Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Socit Gnrale.
Diversification Opportunities for Deutsche Bank and Socit Gnrale
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Deutsche and Socit is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit 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 Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Socit Gnrale go up and down completely randomly.
Pair Corralation between Deutsche Bank and Socit Gnrale
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 0.91 times more return on investment than Socit Gnrale. However, Deutsche Bank AG is 1.09 times less risky than Socit Gnrale. It trades about 0.0 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about -0.21 per unit of risk. If you would invest 1,712 in Deutsche Bank AG on September 4, 2024 and sell it today you would lose (4.00) from holding Deutsche Bank AG or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Deutsche Bank AG vs. Socit Gnrale Socit
Performance |
| Timeline |
| Deutsche Bank AG |
| Socit Gnrale Socit |
Deutsche Bank and Socit Gnrale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Socit Gnrale
The main advantage of trading using opposite Deutsche Bank and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Socit Gnrale 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 Socit Gnrale will offset losses from the drop in Socit Gnrale'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 |
| Socit Gnrale vs. First Hawaiian | Socit Gnrale vs. Central Pacific Financial | Socit Gnrale vs. Territorial Bancorp | Socit Gnrale vs. Comerica |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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