Correlation Between Deutsche Bank and Marvell Technology
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Marvell Technology 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 Marvell Technology 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 Marvell Technology, you can compare the effects of market volatilities on Deutsche Bank and Marvell Technology 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 Marvell Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Marvell Technology.
Diversification Opportunities for Deutsche Bank and Marvell Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Deutsche and Marvell is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and Marvell Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marvell Technology 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 Marvell Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marvell Technology has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Marvell Technology go up and down completely randomly.
Pair Corralation between Deutsche Bank and Marvell Technology
Assuming the 90 days trading horizon Deutsche Bank Aktiengesellschaft is expected to generate 0.7 times more return on investment than Marvell Technology. However, Deutsche Bank Aktiengesellschaft is 1.43 times less risky than Marvell Technology. It trades about 0.12 of its potential returns per unit of risk. Marvell Technology is currently generating about 0.07 per unit of risk. If you would invest 5,150 in Deutsche Bank Aktiengesellschaft on September 2, 2024 and sell it today you would earn a total of 4,900 from holding Deutsche Bank Aktiengesellschaft or generate 95.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.56% |
| Values | Daily Returns |
Deutsche Bank Aktiengesellscha vs. Marvell Technology
Performance |
| Timeline |
| Deutsche Bank Aktien |
| Marvell Technology |
Deutsche Bank and Marvell Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Marvell Technology
The main advantage of trading using opposite Deutsche Bank and Marvell Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Marvell Technology 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 Marvell Technology will offset losses from the drop in Marvell Technology's long position.| Deutsche Bank vs. Ita Unibanco Holding | Deutsche Bank vs. Banco Santander SA | Deutsche Bank vs. Itasa Investimentos |
| Marvell Technology vs. Taiwan Semiconductor Manufacturing | Marvell Technology vs. Alibaba Group Holding | Marvell Technology vs. Microsoft | Marvell Technology vs. Alphabet |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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