Correlation Between Deutsche Bank and Delta Technologies
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Delta Technologies 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 Delta Technologies 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 Delta Technologies Nyrt, you can compare the effects of market volatilities on Deutsche Bank and Delta Technologies 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 Delta Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Delta Technologies.
Diversification Opportunities for Deutsche Bank and Delta Technologies
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Deutsche and Delta is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Delta Technologies Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Technologies 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 Delta Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Technologies Nyrt has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Delta Technologies go up and down completely randomly.
Pair Corralation between Deutsche Bank and Delta Technologies
Assuming the 90 days trading horizon Deutsche Bank AG is expected to generate 0.81 times more return on investment than Delta Technologies. However, Deutsche Bank AG is 1.23 times less risky than Delta Technologies. It trades about 0.62 of its potential returns per unit of risk. Delta Technologies Nyrt is currently generating about -0.25 per unit of risk. 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Deutsche Bank AG vs. Delta Technologies Nyrt
Performance |
| Timeline |
| Deutsche Bank AG |
| Delta Technologies Nyrt |
Deutsche Bank and Delta Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Delta Technologies
The main advantage of trading using opposite Deutsche Bank and Delta Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Delta Technologies 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 Delta Technologies will offset losses from the drop in Delta Technologies' long position.| Deutsche Bank vs. OTP Bank Nyrt | Deutsche Bank vs. MOL Nyrt | Deutsche Bank vs. OPUS GLOBAL Nyrt | Deutsche Bank vs. ALTEO Energiaszolgaltato Nyrt |
| Delta Technologies vs. NordTelekom Telecommunications Service | Delta Technologies vs. Infineon Technologies AG | Delta Technologies vs. Nutex Investments PLC | Delta Technologies vs. AKKO Invest Nyrt |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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