Correlation Between Deutsche Bank and Livetech
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Livetech 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 Livetech 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 Livetech da Bahia, you can compare the effects of market volatilities on Deutsche Bank and Livetech 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 Livetech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Livetech.
Diversification Opportunities for Deutsche Bank and Livetech
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and Livetech is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and Livetech da Bahia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Livetech da Bahia 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 Livetech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Livetech da Bahia has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Livetech go up and down completely randomly.
Pair Corralation between Deutsche Bank and Livetech
Assuming the 90 days trading horizon Deutsche Bank Aktiengesellschaft is expected to generate 0.79 times more return on investment than Livetech. However, Deutsche Bank Aktiengesellschaft is 1.27 times less risky than Livetech. It trades about 0.07 of its potential returns per unit of risk. Livetech da Bahia is currently generating about -0.04 per unit of risk. If you would invest 5,840 in Deutsche Bank Aktiengesellschaft on September 19, 2024 and sell it today you would earn a total of 4,907 from holding Deutsche Bank Aktiengesellschaft or generate 84.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 88.98% |
| Values | Daily Returns |
Deutsche Bank Aktiengesellscha vs. Livetech da Bahia
Performance |
| Timeline |
| Deutsche Bank Aktien |
| Livetech da Bahia |
Deutsche Bank and Livetech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Livetech
The main advantage of trading using opposite Deutsche Bank and Livetech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Livetech 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 Livetech will offset losses from the drop in Livetech's long position.| Deutsche Bank vs. HDFC Bank Limited | Deutsche Bank vs. Ita Unibanco Holding | Deutsche Bank vs. Banco Santander SA | Deutsche Bank vs. SVB Financial Group |
| Livetech vs. T Mobile | Livetech vs. Verizon Communications | Livetech vs. Vodafone Group Public | Livetech vs. Fundo Investimento Imobiliario |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |