Correlation Between Deutsche Bank and JHSF Participaes
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and JHSF Participaes 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 JHSF Participaes 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 JHSF Participaes SA, you can compare the effects of market volatilities on Deutsche Bank and JHSF Participaes 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 JHSF Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and JHSF Participaes.
Diversification Opportunities for Deutsche Bank and JHSF Participaes
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and JHSF is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and JHSF Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JHSF Participaes 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 JHSF Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JHSF Participaes has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and JHSF Participaes go up and down completely randomly.
Pair Corralation between Deutsche Bank and JHSF Participaes
Assuming the 90 days trading horizon Deutsche Bank Aktiengesellschaft is expected to generate 0.88 times more return on investment than JHSF Participaes. However, Deutsche Bank Aktiengesellschaft is 1.14 times less risky than JHSF Participaes. It trades about 0.27 of its potential returns per unit of risk. JHSF Participaes SA is currently generating about 0.17 per unit of risk. If you would invest 10,659 in Deutsche Bank Aktiengesellschaft on November 2, 2024 and sell it today you would earn a total of 971.00 from holding Deutsche Bank Aktiengesellschaft or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Bank Aktiengesellscha vs. JHSF Participaes SA
Performance |
| Timeline |
| Deutsche Bank Aktien |
| JHSF Participaes |
Deutsche Bank and JHSF Participaes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and JHSF Participaes
The main advantage of trading using opposite Deutsche Bank and JHSF Participaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, JHSF Participaes 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 JHSF Participaes will offset losses from the drop in JHSF Participaes' long position.| Deutsche Bank vs. Hormel Foods | Deutsche Bank vs. Zoom Video Communications | Deutsche Bank vs. Melco Resorts Entertainment | Deutsche Bank vs. Live Nation Entertainment, |
| JHSF Participaes vs. Tecnisa SA | JHSF Participaes vs. Even Construtora e | JHSF Participaes vs. EZTEC Empreendimentos e | JHSF Participaes vs. Gafisa SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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