Correlation Between Deutsche Bank and Spring Valley
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Spring Valley 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 Spring Valley 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 Spring Valley Acquisition, you can compare the effects of market volatilities on Deutsche Bank and Spring Valley 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 Spring Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Spring Valley.
Diversification Opportunities for Deutsche Bank and Spring Valley
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deutsche and Spring is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Spring Valley Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Valley 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 Spring Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spring Valley Acquisition has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Spring Valley go up and down completely randomly.
Pair Corralation between Deutsche Bank and Spring Valley
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 16.99 times more return on investment than Spring Valley. However, Deutsche Bank is 16.99 times more volatile than Spring Valley Acquisition. It trades about 0.03 of its potential returns per unit of risk. Spring Valley Acquisition is currently generating about 0.17 per unit of risk. If you would invest 1,708 in Deutsche Bank AG on October 1, 2024 and sell it today you would earn a total of 10.00 from holding Deutsche Bank AG or generate 0.59% 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. Spring Valley Acquisition
Performance |
| Timeline |
| Deutsche Bank AG |
| Spring Valley Acquisition |
Deutsche Bank and Spring Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Spring Valley
The main advantage of trading using opposite Deutsche Bank and Spring Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Spring Valley 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 Spring Valley will offset losses from the drop in Spring Valley'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 |
| Spring Valley vs. Aquagold International | Spring Valley vs. Morningstar Unconstrained Allocation | Spring Valley vs. Thrivent High Yield | Spring Valley vs. Via Renewables |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |