Correlation Between Deutsche Bank and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Hartford Financial 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 Hartford Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Bank Aktiengesellschaft and The Hartford Financial, you can compare the effects of market volatilities on Deutsche Bank and Hartford Financial 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 Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Hartford Financial.
Diversification Opportunities for Deutsche Bank and Hartford Financial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Deutsche and Hartford is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and The Hartford Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Financial 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 Aktiengesellschaft are associated (or correlated) with Hartford Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Financial has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Hartford Financial go up and down completely randomly.
Pair Corralation between Deutsche Bank and Hartford Financial
If you would invest 10,800 in Deutsche Bank Aktiengesellschaft on November 4, 2024 and sell it today you would earn a total of 694.00 from holding Deutsche Bank Aktiengesellschaft or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Deutsche Bank Aktiengesellscha vs. The Hartford Financial
Performance |
| Timeline |
| Deutsche Bank Aktien |
| The Hartford Financial |
Deutsche Bank and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Hartford Financial
The main advantage of trading using opposite Deutsche Bank and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Hartford Financial 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 Hartford Financial will offset losses from the drop in Hartford Financial's long position.| Deutsche Bank vs. Align Technology | Deutsche Bank vs. Hospital Mater Dei | Deutsche Bank vs. Cognizant Technology Solutions | Deutsche Bank vs. DXC Technology |
| Hartford Financial vs. Costco Wholesale | Hartford Financial vs. Electronic Arts | Hartford Financial vs. Cardinal Health, | Hartford Financial vs. METISA Metalrgica Timboense |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |