Correlation Between Dow Jones and DEUTSCHE
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By analyzing existing cross correlation between Dow Jones Industrial and DEUTSCHE BANK AG, you can compare the effects of market volatilities on Dow Jones and DEUTSCHE 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 Dow Jones with a short position of DEUTSCHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and DEUTSCHE.
Diversification Opportunities for Dow Jones and DEUTSCHE
Very good diversification
The 3 months correlation between Dow and DEUTSCHE is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and DEUTSCHE BANK AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEUTSCHE BANK AG and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with DEUTSCHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEUTSCHE BANK AG has no effect on the direction of Dow Jones i.e., Dow Jones and DEUTSCHE go up and down completely randomly.
Pair Corralation between Dow Jones and DEUTSCHE
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.97 times more return on investment than DEUTSCHE. However, Dow Jones Industrial is 1.03 times less risky than DEUTSCHE. It trades about 0.22 of its potential returns per unit of risk. DEUTSCHE BANK AG is currently generating about -0.19 per unit of risk. If you would invest 4,299,221 in Dow Jones Industrial on October 28, 2024 and sell it today you would earn a total of 143,204 from holding Dow Jones Industrial or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Dow Jones Industrial vs. DEUTSCHE BANK AG
Performance |
| Timeline |
Dow Jones and DEUTSCHE Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
DEUTSCHE BANK AG
Pair trading matchups for DEUTSCHE
Pair Trading with Dow Jones and DEUTSCHE
The main advantage of trading using opposite Dow Jones and DEUTSCHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, DEUTSCHE 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 DEUTSCHE will offset losses from the drop in DEUTSCHE's long position.| Dow Jones vs. Turning Point Brands | Dow Jones vs. Weyco Group | Dow Jones vs. Willamette Valley Vineyards | Dow Jones vs. Compania Cervecerias Unidas |
| DEUTSCHE vs. Valneva SE ADR | DEUTSCHE vs. Life360, Common Stock | DEUTSCHE vs. Viemed Healthcare | DEUTSCHE vs. DHI Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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