Correlation Between Deutsche Bank and CAIXABANK UNADR
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and CAIXABANK UNADR 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 CAIXABANK UNADR 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 CAIXABANK UNADR 13, you can compare the effects of market volatilities on Deutsche Bank and CAIXABANK UNADR 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 CAIXABANK UNADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and CAIXABANK UNADR.
Diversification Opportunities for Deutsche Bank and CAIXABANK UNADR
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Deutsche and CAIXABANK is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and CAIXABANK UNADR 13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAIXABANK UNADR 13 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 CAIXABANK UNADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAIXABANK UNADR 13 has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and CAIXABANK UNADR go up and down completely randomly.
Pair Corralation between Deutsche Bank and CAIXABANK UNADR
Assuming the 90 days horizon Deutsche Bank Aktiengesellschaft is expected to generate 0.78 times more return on investment than CAIXABANK UNADR. However, Deutsche Bank Aktiengesellschaft is 1.28 times less risky than CAIXABANK UNADR. It trades about 0.09 of its potential returns per unit of risk. CAIXABANK UNADR 13 is currently generating about -0.1 per unit of risk. If you would invest 1,554 in Deutsche Bank Aktiengesellschaft on September 1, 2024 and sell it today you would earn a total of 52.00 from holding Deutsche Bank Aktiengesellschaft or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Bank Aktiengesellscha vs. CAIXABANK UNADR 13
Performance |
| Timeline |
| Deutsche Bank Aktien |
| CAIXABANK UNADR 13 |
Deutsche Bank and CAIXABANK UNADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and CAIXABANK UNADR
The main advantage of trading using opposite Deutsche Bank and CAIXABANK UNADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, CAIXABANK UNADR 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 CAIXABANK UNADR will offset losses from the drop in CAIXABANK UNADR's long position.| Deutsche Bank vs. LIFENET INSURANCE CO | Deutsche Bank vs. Zurich Insurance Group | Deutsche Bank vs. Hitachi Construction Machinery | Deutsche Bank vs. REVO INSURANCE SPA |
| CAIXABANK UNADR vs. TFS FINANCIAL | CAIXABANK UNADR vs. Japan Medical Dynamic | CAIXABANK UNADR vs. Mizuho Financial Group | CAIXABANK UNADR vs. IMAGIN MEDICAL INC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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