Correlation Between Deutsche Bank and Hospital Mater
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Hospital Mater 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 Hospital Mater 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 Hospital Mater Dei, you can compare the effects of market volatilities on Deutsche Bank and Hospital Mater 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 Hospital Mater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Hospital Mater.
Diversification Opportunities for Deutsche Bank and Hospital Mater
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and Hospital is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and Hospital Mater Dei in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hospital Mater Dei 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 Hospital Mater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hospital Mater Dei has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Hospital Mater go up and down completely randomly.
Pair Corralation between Deutsche Bank and Hospital Mater
Assuming the 90 days trading horizon Deutsche Bank Aktiengesellschaft is expected to generate 0.81 times more return on investment than Hospital Mater. However, Deutsche Bank Aktiengesellschaft is 1.24 times less risky than Hospital Mater. It trades about 0.08 of its potential returns per unit of risk. Hospital Mater Dei is currently generating about -0.04 per unit of risk. If you would invest 9,770 in Deutsche Bank Aktiengesellschaft on September 1, 2024 and sell it today you would earn a total of 280.00 from holding Deutsche Bank Aktiengesellschaft or generate 2.87% 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. Hospital Mater Dei
Performance |
| Timeline |
| Deutsche Bank Aktien |
| Hospital Mater Dei |
Deutsche Bank and Hospital Mater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Hospital Mater
The main advantage of trading using opposite Deutsche Bank and Hospital Mater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Hospital Mater 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 Hospital Mater will offset losses from the drop in Hospital Mater's long position.| Deutsche Bank vs. Paycom Software | Deutsche Bank vs. United States Steel | Deutsche Bank vs. Align Technology | Deutsche Bank vs. Charter Communications |
| Hospital Mater vs. Fras le SA | Hospital Mater vs. Western Digital | Hospital Mater vs. Energisa SA | Hospital Mater vs. Clave Indices De |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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