Correlation Between Deutsche Bank and Csepel Holding
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Csepel Holding 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 Csepel Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Bank AG and Csepel Holding Nyrt, you can compare the effects of market volatilities on Deutsche Bank and Csepel Holding 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 Csepel Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Csepel Holding.
Diversification Opportunities for Deutsche Bank and Csepel Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and Csepel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Csepel Holding Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Csepel Holding Nyrt 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 AG are associated (or correlated) with Csepel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Csepel Holding Nyrt has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Csepel Holding go up and down completely randomly.
Pair Corralation between Deutsche Bank and Csepel Holding
If you would invest 654,400 in Deutsche Bank AG on September 18, 2024 and sell it today you would earn a total of 47,500 from holding Deutsche Bank AG or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Deutsche Bank AG vs. Csepel Holding Nyrt
Performance |
| Timeline |
| Deutsche Bank AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Csepel Holding Nyrt |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Deutsche Bank and Csepel Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Csepel Holding
The main advantage of trading using opposite Deutsche Bank and Csepel Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Csepel Holding 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 Csepel Holding will offset losses from the drop in Csepel Holding's long position.| Deutsche Bank vs. Infineon Technologies AG | Deutsche Bank vs. OTP Bank Nyrt | Deutsche Bank vs. NordTelekom Telecommunications Service | Deutsche Bank vs. Delta Technologies Nyrt |
| Csepel Holding vs. Delta Technologies Nyrt | Csepel Holding vs. NordTelekom Telecommunications Service | Csepel Holding vs. Deutsche Bank AG |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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