Correlation Between Deutsche Bank and INTUITIVE SURGICAL
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and INTUITIVE SURGICAL 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 INTUITIVE SURGICAL 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 INTUITIVE SURGICAL, you can compare the effects of market volatilities on Deutsche Bank and INTUITIVE SURGICAL 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 INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and INTUITIVE SURGICAL.
Diversification Opportunities for Deutsche Bank and INTUITIVE SURGICAL
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Deutsche and INTUITIVE is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL 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 INTUITIVE SURGICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTUITIVE SURGICAL has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and INTUITIVE SURGICAL go up and down completely randomly.
Pair Corralation between Deutsche Bank and INTUITIVE SURGICAL
Assuming the 90 days horizon Deutsche Bank is expected to generate 1.32 times less return on investment than INTUITIVE SURGICAL. But when comparing it to its historical volatility, Deutsche Bank Aktiengesellschaft is 1.03 times less risky than INTUITIVE SURGICAL. It trades about 0.1 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 27,750 in INTUITIVE SURGICAL on August 25, 2024 and sell it today you would earn a total of 25,630 from holding INTUITIVE SURGICAL or generate 92.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Bank Aktiengesellscha vs. INTUITIVE SURGICAL
Performance |
| Timeline |
| Deutsche Bank Aktien |
| INTUITIVE SURGICAL |
Deutsche Bank and INTUITIVE SURGICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and INTUITIVE SURGICAL
The main advantage of trading using opposite Deutsche Bank and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, INTUITIVE SURGICAL 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 INTUITIVE SURGICAL will offset losses from the drop in INTUITIVE SURGICAL's long position.| Deutsche Bank vs. Postal Savings Bank | Deutsche Bank vs. Superior Plus Corp | Deutsche Bank vs. NMI Holdings | Deutsche Bank vs. Origin Agritech |
| INTUITIVE SURGICAL vs. PennantPark Investment | INTUITIVE SURGICAL vs. Lion One Metals | INTUITIVE SURGICAL vs. SLR Investment Corp | INTUITIVE SURGICAL vs. Apollo Investment Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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